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.
Financial Decision Fatigue: When to Automate and When to Act
We make thousands of decisions every day. What to wear. What to eat. Which email to respond to first. By the end of the day, our ability to make thoughtful, rational choices is often depleted.
This is known as decision fatigue. And it does not stop at small daily choices. It affects financial decisions too.
Is your emotional attachment to money holding you back?
The way you attach value to money is a far more complex process than you might realise. Our brains are clever little engines, attributing different emotional values to the same amount of money, depending on how important it is to us.