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.
Lifetime Book Club: The Green Mile by Stephen King
Sometimes the most powerful stories aren’t the ones that scare us. They’re the ones that move us.
Stephen King might be best known for horror, but The Green Mile is a story of humanity, compassion, and courage in the face of unthinkable circumstances. Set in a 1930s prison, it follows Paul Edgecombe, a death row officer, and John Coffey, a man with extraordinary empathy and an inexplicable gift.
The Growing Divide: Why Private Medical Claims Are Surging in New Zealand
It feels like there is another headline about our public health system being under pressure every week. Long waitlists, staff shortages, and hospitals struggling to keep up. It is no surprise that more Kiwis are turning to private healthcare to get the treatment they need and faster.