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.
KiwiSaver is changing
Budget 2025 has introduced some significant updates to KiwiSaver. These changes are aimed at ensuring the scheme remains sustainable while helping New Zealanders grow their retirement savings. Whether you are just starting out, nearing retirement, or somewhere in between, here's what you need to know and how it might affect your financial plans.
Lifetime Book Club: Four Thousand Weeks by Oliver Burkeman
In a world obsessed with productivity hacks, endless to-do lists and squeezing more out of every day, Burkeman offers something radical: acceptance. Not of defeat – but of reality. Because when you really look at it, four thousand weeks (roughly 80 years) is all we’ve got. And no app or bullet journal is going to give us more.