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.
Market & Portfolio Update - April 2025
Global markets began April with some volatility as investors digested “Liberation Day” tariffs announced by the Trump administration. In particular, investors feared a tariff war would lead to higher inflation, lower global growth, and the potential erosion of the historic ‘safe haven’ status enjoyed by the US dollar. However, the markets recovered a significant portion of these losses following the announcement that all reciprocal tariffs except China’s would be delayed for 90 days. Due to the volatility, global markets were down -3.8% for the month.
Staying Cyber Smart
At Lifetime, looking after your financial wellbeing includes helping you stay safe online. Lately, we’ve seen an increase in online scam attempts across the financial sector here in New Zealand, so we thought this was a good time to share a few friendly reminders on how you can stay protected.