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.
Finding Your Financial Ikigai: The Japanese Art of a Balanced & Purposeful Life
In a world that often measures success in financial terms, the Japanese concept of Ikigai offers a refreshing perspective. Transcending the boundaries of culture and geography, this philosophy loosely translates as "a reason for being". Ikigai is a convergence of what you love, what you're good at, what the world needs, and what you can be paid for. It's an approach that represents a broader view of prosperity, encompassing joy, purpose, and contentment. As financial advisers, we find this particularly compelling. This article delves deeper into how Ikigai can not only enrich your life but also inform your financial decisions for a more fulfilling journey.
Lifetime Book Club: Intentional by Chris Bailey
In a world full of distractions, half-finished to-do lists, and “I’ll get to that later” energy, this book feels like a helpful nudge back to what really matters.
It’s not about doing more for the sake of it. It’s about doing the right things, with more purpose, more clarity, and a little less chaos.