Market & Portfolio Update - June 2018
June was a fairly quiet month for world share markets, with most investment funds relatively flat – although this capped off a solid overall first half of the year. Our own NZ share market was the stand-out, helping to offset the effect of a further 3% rise in the NZ Dollar on the value of overseas share investments.
The NZ Dollar’s rise was in tandem with higher long-term market interest rates, as European Central Bank President Mario Draghi acknowledged that the European economy has been growing well – this was seen as hinting at official interest rate hikes moving closer.
More generally, a number of risk factors facing markets have not turned out as badly as initially feared over the past two years. Together with good economic fundamentals, this has supported funds slightly increasing their global share investments during June.
We also added shares in Swiss company Givaudan, a well-entrenched provider of fragrances and food products around the world. The change was funded by selling some shares in Louis Vuitton Moet Hennessy, locking in strong gains over the past year.
Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular investor’s objectives, financial situation or needs. Any opinions contained in it are held as at the report date and are subject to change without notice.
Market & Portfolio Update - January 2026
After strong gains in 2025, the global share market (represented by the MSCI World Gross Index) took a breather in January, returning 0.1% in NZ dollar terms. While the ‘Magnificent 7’ (the seven largest US-listed companies, including Google, Microsoft & Apple) have been large drivers behind the recent gains seen from the US share market, January told a different story. There appeared to be ‘catch-up’ trade where investors moved out of concentrated tech positions and into the rest of the market, with the Russell 2000 index (a widely regarded proxy for smaller US companies) having a strong month. This was generally seen as improving confidence in the broader US economy.
Interest Rate Averaging: A Smarter Way to Manage Mortgage Risk
When it comes to mortgages, most people focus on one thing, getting the lowest interest rate.
But the lowest rate today doesn’t always lead to the best outcome over time.
Interest Rate Averaging is a strategy designed to reduce risk, smooth cashflow, and create flexibility, rather than trying to perfectly time interest rates, which no one can do consistently.