Market & Portfolio Update - October 2020
New Zealand shares were up over October with electricity generators bouncing back after the Government suggested more support around the Tiwai Aluminium Smelter, which consumes 30% of electricity in NZ.
Australian shares were down a touch over the month as tensions with China escalated further which has been an ongoing back and forth between the two countries over the past three years.
Global bonds were down (yields rose) through October as calls for more fiscal stimulus gained traction putting upward pressure on yields with the prospect of more government bond supply to come. We remain a little cautious on the outlook for rising interest rates, and have recently increased our allocation to inflation linked bonds to provide a degree of protection against a potential rise in inflation as economic growth gradually picks up.
Lifetime Book Club: Remarkably Bright Creatures by Shelby Van Pelt
What can an unlikely friendship teach us about connection, curiosity and the things we sometimes fail to see in one another?
Remarkably Bright Creatures by Shelby Van Pelt is a warm and thoughtful novel about friendship, loss, family, and finding connection in unexpected places.
What could Capital Gains Tax mean for property investors?
If Capital Gains Tax (CGT) is introduced from 1 July 2027 under Labour’s proposal, property investors will naturally want to understand what it could mean for them, particularly if they already own property that has increased significantly in value.