Market & Portfolio Update - June 2024
Global share markets had another positive month, ending June up 2.9%. This caps off a strong first half of the year, with global share markets up 16% year to date. The technology and semiconductor sectors have been large contributors to the market gains on the back of robust earnings and rapid increase in spending on data centres and semiconductor chips that help train and produce AI Models.
Bond markets were relatively muted in June, with both New Zealand and global benchmarks relatively flat for the month. Uncertainty remains in the timing of central bank rate cuts, although The Reserve Bank of New Zealand acknowledged inflation may reach their 1-3% target band earlier than expected, potentially indicating a rate cut before the end of 2024.
New Zealand’s first quarter GDP number was released during the month, revealing a 0.2% expansion of the economy. Behind the headline GDP number reveals stark differences between sectors. The utilities sector saw the strongest growth, while the construction industry was weakest and actually contracted during the quarter.
I Googled My Financial Future. Here's What Happened
Spoiler alert: According to the internet, I should already be retired, living off dividends, and renting out three Airbnbs in Queenstown.
Sounds ideal. If only it were true.
Lifetime Book Club: Better Never Stops by Dr Paul Wood
Better Never Stops by Dr Paul Wood is an inspiring personal development book that combines neuroscience, psychology, and the author's extraordinary life story to show that lasting growth comes from small, consistent improvements rather than dramatic transformations. Drawing on his journey from prison to becoming a doctor of psychology, Wood challenges readers to embrace continuous learning, resilience, and the belief that becoming better is a lifelong process, not a destination.