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.
You’re Missing Out on Tax Savings If You Haven’t Had a Chattels Valuation Done
We’ve been recommending chattels valuations from Valuit for over 20 years, and it still amazes us how many property investors haven’t had one completed.
If you own a rental property and your current accountant hasn’t discussed chattels valuations and depreciation with Valuit, there’s a very good chance you’re paying thousands of dollars more tax than you need to over the life of the property.
12 Common issues and mistakes we regularly see
We review many financial statements prepared by other accountants. Below are some recurring issues we frequently identify, many of which are also areas the IRD commonly focuses on.