Market & Portfolio Update - May 2022

17 June 2022 by Lifetime in Market Update

Market & Portfolio Update - May 2022

Volatility in global share markets continued in May as investors focused on inflation and rising interest rates. Despite the volatility, global share markets rebounded to end the month flat, with the energy sector leading the way (up 13.5%). The energy sector includes oil producers which benefitted from oil prices rising to $123/barrel. The European Union agreed to a partial ban on Russian oil. The ban is expected to cover 90% of Europe’s Russian oil imports by the end of this year.

As expected by markets, the US Federal Reserve raised interest rates by 0.5% in May. This was the largest interest rate hike since 2000, and signals the Federal Reserve’s commitment to ‘walk-the-walk’ to try to control inflation.

The Reserve Bank of New Zealand also raised interest rates in May after it hiked the OCR by 0.5%. The OCR now sits at 2%, and the Reserve Bank’s updated forecasts show it reaching 4% by September of next year. While the rapid rise in interest rates has impacted portfolio returns over the last year (particularly conservative funds with a high allocation to bonds), it is important to note that market expectations have already adjusted so that a rise to 4% next year is already baked into prices of bond investments. There is a silver lining though - higher interest rates mean reinvestment rates are now much more attractive, supporting the future returns of bond investments.

preview image - 9 Financial Habits Of Successful People

9 Financial Habits Of Successful People

Discover the secrets to financial success as we delve into the nine key habits practiced by prosperous individuals. From continuous learning and strategic investment to smart spending and insurance protection, this article offers invaluable insights to empower you on your journey towards financial freedom.

10 April 2024 by Lifetime in Financial Planning, Learning & Development
preview image - Business Must Do’s During The End of the Financial Year

Business Must Do’s During The End of the Financial Year

As the end of the financial year approaches on 31 March 2024, there are a few things to take a look at to ensure you are prepared. We’ve built a checklist of reminders to make sure that you don’t miss a step.

28 March 2024 by Hope Etienne in Accounting