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.
Unlocking Financial Harmony: Navigating the Symphony of Life with Mindfulness
In the hustle and bustle of daily life, the concept of mindfulness often finds its place in discussions about mental health and stress reduction. However, its impact on financial wellbeing is a hidden gem worth exploring.
A 2021 survey by the New Zealand Retirement Commission ranked New Zealand’s overall financial wellbeing as 61 out of 100. In this case, financial wellbeing is defined as “a combination of meeting commitments, being financially comfortable, and resilient for the future.” The area in which New Zealand scored the lowest was preparedness for retirement, with a 43 out of 100 which highlights that around one in three New Zealanders are concerned that they will not have adequate savings to last through their retirement.
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.