Market & Portfolio Update - May 2021
Global share markets moved slightly higher during the month, driven by continued job growth in the United States, and business sentiment surveys remaining elevated.
May saw commodity prices continue their rise, with the price of oil reaching US$70 a barrel, its highest level since late 2018. Rising oil prices are usually a sign of good levels of demand from consumers, supporting economic growth.
The Australian share market was one of the better performing markets being made up of more ‘cyclical’ style sectors such as banks which tend to outperform during the recovery phase of an economic cycle. The New Zealand share market lagged in comparison, a result of Fisher & Paykel Healthcare’s financial results coming in behind market expectations (but still delivering an 82% rise in annual earnings thanks to strong demand during Covid-19).
While the Reserve Bank of NZ kept the Official Cash Rate (OCR) unchanged at 0.25% in May’s policy announcement, they took markets off guard a little by showing an expectation for the OCR to start increasing during the second half of next year. This would be an earlier rise than expected from most central banks around the world, again a sign of New Zealand’s relatively strong economic recovery so far.
Finding Your Financial Ikigai: The Japanese Art of a Balanced & Purposeful Life
In a world that often measures success in financial terms, the Japanese concept of Ikigai offers a refreshing perspective. Transcending the boundaries of culture and geography, this philosophy loosely translates as "a reason for being". Ikigai is a convergence of what you love, what you're good at, what the world needs, and what you can be paid for. It's an approach that represents a broader view of prosperity, encompassing joy, purpose, and contentment. As financial advisers, we find this particularly compelling. This article delves deeper into how Ikigai can not only enrich your life but also inform your financial decisions for a more fulfilling journey.
Lifetime Book Club: Intentional by Chris Bailey
In a world full of distractions, half-finished to-do lists, and “I’ll get to that later” energy, this book feels like a helpful nudge back to what really matters.
It’s not about doing more for the sake of it. It’s about doing the right things, with more purpose, more clarity, and a little less chaos.