Market & Portfolio Update - March 2022
Global share markets gained 3% following strong economic data releases, investors understanding the economic implications of the Russian invasion better, and more clarity around the Federal Reserve’s hiking path over the remainder of 2022. The New Zealand share market gained as well, however, the Australian market was the strongest performer returning over 6% for the month. The Australian market has a higher allocation to commodity producers such as iron ore miners and natural gas, which have performed well as global commodity prices have risen since the war began.
The impacts of the war continue to keep commodity prices elevated, and inflation is rising globally. Here in New Zealand, the Reserve Bank’s job is to maintain price stability and inflation at 2% over the long term. With inflation running considerably higher than that at the moment, we are seeing an increased chance of the RBNZ raising interest rates by 0.5% at their next meeting.
Meanwhile, the US Federal Reserve raised its policy rate by 0.25%, with eight further hikes (2.2% in total) expected by the markets for the remainder of 2022. The Fed also discussed plans to reduce its $9 Trillion balance sheet over the coming months.
Lifetime Book Club: The Green Mile by Stephen King
Sometimes the most powerful stories aren’t the ones that scare us. They’re the ones that move us.
Stephen King might be best known for horror, but The Green Mile is a story of humanity, compassion, and courage in the face of unthinkable circumstances. Set in a 1930s prison, it follows Paul Edgecombe, a death row officer, and John Coffey, a man with extraordinary empathy and an inexplicable gift.
The Growing Divide: Why Private Medical Claims Are Surging in New Zealand
It feels like there is another headline about our public health system being under pressure every week. Long waitlists, staff shortages, and hospitals struggling to keep up. It is no surprise that more Kiwis are turning to private healthcare to get the treatment they need and faster.