Market & Portfolio Update - June 2023
Global share markets had another strong month in June, rising 3.7% in New Zealand dollar terms. Investors were encouraged by a sharp drop in year-on-year inflation in the US of 4.0% - still above target but substantially lower than the 9.1% recorded in June 2022.
International bond markets were flat over the month as central banks transitioned from hiking their respective policy rates to pausing to evaluate incoming data. This is a signal that interest rates globally may be nearing their peak. The US Federal Reserve maintained their policy rate at 5.25%, the first pause after 10 consecutive hikes over the past 15 months. This should be supportive of bond returns looking forward.
The first half of the year has started off strongly for financial markets, regaining the lost ground they experienced in 2022. Global share markets have led the way, up 19% in New Zealand dollar terms. This highlights the importance of staying invested during volatile times and not focusing on news headlines which tend to focus on negatives.
Staying Cyber Smart
At Lifetime, looking after your financial wellbeing includes helping you stay safe online. Lately, we’ve seen an increase in online scam attempts across the financial sector here in New Zealand, so we thought this was a good time to share a few friendly reminders on how you can stay protected.
Lifetime Book Club: The Behaviour Gap by Carl Richards
Welcome back to the Lifetime Book Club, this month, we’re taking a closer look at the emotional side of investing with The Behaviour Gap by Carl Richards. It’s a smart, simple, and refreshingly honest book about the biggest threat to your financial success - you.