Market & Portfolio Update - November 2020
Global markets performed very strongly during November. The first catalyst markets liked was the result of the US election. Although we haven’t seen the ‘blue wave’ result the polls were suggesting, it is looking like the US presidency and Senate will be divided. A divided government means it is less likely there will be significant change to regulations, giving more certainty to companies and investors.
The second major catalyst was the positive news from the phase three trials for Covid-19 vaccines. Banks, energy, and travel stocks all performed strongly as a result. The Australian share market in particular, performed well on this news. The Australian market has a larger allocation to these sectors than other global markets, resulting in it being up almost 10% in local currency terms.
Booster have recently increased the holdings in Australian companies that operate in the sectors that are likely to benefit the most from the global economy reopening and reduced the holdings in more defensive style companies. Although it is still likely it will take some time to get back to pre-Covid normality, investment markets tend to look forward so some are positioning funds in expectation of this.
New Zealand’s gender pay gap is unlikely to be going anywhere anytime soon and the impact of earning less over a lifetime has an enormous effect on a woman’s immediate and future financial security. This is compounded by a lower level of workplace participation, a tendency to seek part-time casual work and bear the bulk of caring responsibilities for children and other family members. So how can women bridge the gap? Here are some tips on how to build wealth and make positive steps towards pay equity and financial independence despite and in spite of the hurdles women face.
Lifetime continues its growth strategy to build a long-term sustainable financial advice business to serve New Zealanders with the joining of One50 Group. The deal adds accounting and property accounting partnerships, general insurance and business advisory services to the Lifetime advice suite.