Market & Portfolio Update - November 2023
Global share markets had a strong month, up 8% in local currency terms in November. A combination of factors such as declining long-term bond rates, a lower-than-expected US inflation report, and resilient company earnings, particularly in the Information Technology sector, contributed to this performance.
Global bond markets gained 4% - their best monthly performance since 2008. This was driven by the US Treasury signalling less government borrowing in the short-term than expected by markets and downside surprises to economic data, which led investors to lower their interest rate expectations. Two of the most important data sets closely tracked by investors were the US employment and US inflation reports. The employment data showed a higher unemployment rate and fewer jobs added than expected, and this was followed by a lower-than-expected inflation report.
New Zealand followed international markets higher, with the NZX50 up over 5% in November. The RBNZ left the OCR unchanged at 5.5%. However, they suggested that interest rates may still go higher or stay higher for longer than expected. They pointed toward several upside risks to inflation, including elevated net migration.
KiwiSaver is changing
Budget 2025 has introduced some significant updates to KiwiSaver. These changes are aimed at ensuring the scheme remains sustainable while helping New Zealanders grow their retirement savings. Whether you are just starting out, nearing retirement, or somewhere in between, here's what you need to know and how it might affect your financial plans.
Lifetime Book Club: Four Thousand Weeks by Oliver Burkeman
In a world obsessed with productivity hacks, endless to-do lists and squeezing more out of every day, Burkeman offers something radical: acceptance. Not of defeat – but of reality. Because when you really look at it, four thousand weeks (roughly 80 years) is all we’ve got. And no app or bullet journal is going to give us more.