Market & Portfolio Update - October 2018
Market & Portfolio Update - October 2018
Share markets continued their 2017 ascension during October, with a moderate 3% gain boosted further by the New Zealand Dollar falling 5%. For New Zealand investors, the fall in our local currency reinforces the diversification benefits of holding foreign investments, which rise in value when the currency falls.
While exchange rate changes have featured this month, the real story driving markets is global economic growth continuing to expand all around the world. This is one of the pillars supporting global share markets’ good performance since the start of the year.
With many investors globally remaining arguably too cautious about the current economic expansion, we have, in the vein of Warren Buffett, slightly increased funds’ global share investments during the month of October.
Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular investor’s objectives, financial situation or needs. Any opinions contained in it are held as at the report date and are subject to change without notice.
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March saw the Coronavirus have a more tangible effect at home, with the move to lockdown in New Zealand taking it from a global event to something with a very clear impact on our day-to-day lives. Meanwhile, share markets around the world continued to be volatile, with the US S&P 500 index staging a dramatic partial 18% recovery in three days towards the end of the month.