Market & Portfolio Update - May 2023

May saw global share markets deliver a flat return in local currency terms. Worries over the US debt ceiling made headlines; however, a deal between Republicans and Democrats was reached shortly after month-end, and the crisis was averted.

California-based Fisher Investments led the way, supported by their holdings in a number of technology companies. For example, Nvidia jumped 40% after it raised its outlook above expectations thanks to demand for its AI processor chips. At the time of writing, the stock is up over 160% year to date.

In May, we saw the release of the latest NZ budget, with the release pointing toward increased debt issuance, more spending and a significant cash deficit. Global credit rating agency S&P reiterated their previous warning around NZ debt levels, indicating a credit rating downgrade may be in the works if we stay on this same path with respect to government spending.