Market & Portfolio Update - July 2024
The Global shares market had a positive month in July, gaining +4% in New Zealand dollar terms. In the US, over half of companies in the S&P500 index have released their latest earnings report, with over two-thirds beating analysts’ expectations. Ten of the eleven sectors in the US finished higher, with Technology being the only sector finishing the month lower.
US inflation crept below 3% for the first time since June 2023, breaking through the 3-4% range it has been hovering in for the last twelve months. Falling inflation and signs of rising unemployment have heightened investor expectations for Fed rate cuts in 2024 and 2025.
New Zealand’s share market had a strong month, up 5.8% in July. Many companies that are sensitive to interest rates had a strong month after the Reserve Bank of NewZealand hinted at potential rate cuts before the end of the year. While the Official Cash Rate was held at 5.50% in July, the Reserve Bank acknowledged monetary policy had significantly reduced inflation and expected it to return to within the 1-3% target range in the coming months. This was a significant change in tone and shifted many investors’ expectations of rate cuts as the Reserve Bank had considered hiking rates back in May.
Unlocking Financial Harmony: Navigating the Symphony of Life with Mindfulness
In the hustle and bustle of daily life, the concept of mindfulness often finds its place in discussions about mental health and stress reduction. However, its impact on financial wellbeing is a hidden gem worth exploring.
Research from the New Zealand Retirement Commission’s Money Matters 2025: The Power of Emergency Savings report highlights growing financial pressure among New Zealanders. The findings show that 56% of participants feel financially uncomfortable, while only 44% report feeling financially comfortable. Financial concerns are also increasing on a year-on-year basis, with 42% of people worried about managing finances from pay to pay this year, compared with 40% last year.
9 Financial Habits Of Successful People
Discover the secrets to financial success as we delve into the nine key habits practiced by prosperous individuals. From continuous learning and strategic investment to smart spending and insurance protection, this article offers invaluable insights to empower you on your journey towards financial freedom.