Market & Portfolio Update – October 2019
Market & Portfolio Update – October 2019
October provided only modest changes in value for most diversified portfolios. While portfolios gained from allocations to global shares, lower returns on local shares and fixed interest investments kept performance relatively static after solid gains in the year so far.
The United States market was a strong performer amongst the more developed countries, benefiting from cooling trade war tension. The market also continued to benefit from central bank policy aimed at supporting growth, with the Federal Reserve lowering its cash rate to 1.5% from 1.75% at the end of the month.
In contrast, it was a softer month for New Zealand shares, driven by lower share prices on the listed electricity generators. They were impacted by the New Zealand Aluminium Smelter announcing a review of the Tiwai Point smelter near Bluff, with a possible closure on the table. The smelter consumes approximately 13% of NZ’s electricity and is likely trying to pressure the electricity generators into a lower price for the electricity it consumes.
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.
As a Coeliac and a Financial Adviser, I have been asking myself several questions about how best to protect myself and my Coeliac daughter from the financial effects of any future illness. Additionally, how much do insurance companies actually understand about Coeliac Disease? And how do they treat us when it comes to assessing our risks of ill health?
Following a wounding All Black loss the outbreak of a dark shadow can often be seen building across New Zealand. This can result in Kiwi’s forgetting rugby is not the only game New Zealander’s punch above their weight in. For example, there is a growing list of New Zealand companies that have successfully expanded and excelled in global markets.