Market & Portfolio Update - November 2021
News of the new Omicron variant broke late in the month, resulting in modest volatility in global share markets. Markets don’t tend to like uncertainty, and it is still early in terms of understanding the Omicron variant. Much more data is required, but initial suggestions are that it is more transmissible but potentially less severe than the Delta variant. Vaccine makers are also optimistic that existing vaccines will provide some protection, and Omicron specific vaccines can be developed reasonably quickly if required.
For New Zealand based investors, the volatility global share markets experienced was offset by the NZ dollar falling. The NZ dollar depreciated against most major currencies, supporting the returns of unhedged overseas assets (assets that are free to move with exchange rates). The result was a positive 3.2% return for unhedged overseas investments.
Fixed interest portfolios provided the diversification we expect during a period of equity market volatility. Both Global and New Zealand fixed interest portfolios returned almost 1%.
In New Zealand, the Reserve Bank hiked the Official Cash Rate 0.25% as expected – taking the rate to 0.75%. Their updated forecasts now show the OCR reaching 2.5% by mid-2023.
Home Loan Rates Are Dropping – But Look Who Quietly Beat ANZ to the Punch
There’s no denying it: after the Reserve Bank’s OCR cut last week, interest rates are finally starting to fall – and fast.
ANZ made headlines with a sharp round of fixed rate drops this week, bringing its 18-month special down to 4.89% and its one-year fixed rate to 4.95%. That’s the lowest ANZ’s fixed rates have been in over three years, and a welcome reprieve for buyers and refixers alike.
Making Sense of Budget 2025: What It Means for Your Money
Budget 2025 has landed, and with it, a sharp focus on doing more with less. Branded as a back-to-basics budget, this year’s announcement signals a disciplined approach to spending, with targeted support in areas that matter most: healthcare, education and the economy.
Whether you’re planning your next career move, growing a business or making sure your retirement savings are working hard, the Budget can have a flow-on effect. Let’s unpack what’s changed, what it means for you, and how to stay financially confident in the year ahead.