Market & Portfolio Update - June 2019
Market & Portfolio Update - June 2019
Global share markets had a strong positive performance in June, rebounding from May’s weakness, but in a somewhat volatile fashion. While over the long-term companies are valued according to their earnings, in the short-term they can be driven by investor sentiment and the current period is no exception. Global share markets rose 6% in June where the US market experienced its strongest June since 1933. This completely offset May’s weakness (the weakest May since 1970) and supported fund's strong gains so far in 2019, with a typical balanced portfolio up 10% over the last six months.
Fixed Interest investments continued to perform well, as market interest rates declined around the world, and yields on NZ bonds fell to new lows. This is a helpful source of support for economic growth, by helping make financing more affordable for a wide range of borrowers.
NZ and Australian shares also performed positively. Our local markets continue to be supported by their relatively defensive characteristics and dividend yields, which are well above the global average. These healthy dividends are looked upon favourable by investors when global and local interest rates move lower as we have continued to see.
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. This document is solely for the use of the party to whom it is provided.
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Lifetime Book Club: Paradox of Choice by Barry Schwartz
In The Paradox of Choice, psychologist Barry Schwartz explores a curious feature of modern life: while freedom and choice are undoubtedly valuable, there can come a point where having more options makes decisions harder, increases our expectations and leaves us questioning whether we made the right choice at all.
From what to buy and where to eat to decisions about careers, relationships and money, Schwartz looks at the hidden mental cost of constantly comparing our options – and makes the case that sometimes, simplifying our choices can leave us better off.