Market & Portfolio Update - October 2021
Global share markets rebounded and had their best month of the year – up 5.5% on average. A mix of positive economic data and company announcements continued to give investors confidence in the current cycle. Demand from consumers continues to be strong and supply chains are struggling to keep up, while also facing the challenges of Covid-disruptions.
Bonds prices fell slightly over the month as developed economies saw short term interest rates rise as inflation continues to surpass expectations. In New Zealand, the RBNZ raised the OCR by 0.25%, and market expectations are for a further increase in November. Similarly, central banks in England, Canada, and Australia are reducing their stimulus programmes and are hinting at raising interest rates to combat rising inflation.
The New Zealand share market ended the month down 1.3%, despite economic indicators remaining extremely strong. New Zealand unemployment rate fell to just 3.4% - equalling the reading in December 2007 and the lowest level since the early 1980s.
KiwiSaver is changing
Budget 2025 has introduced some significant updates to KiwiSaver. These changes are aimed at ensuring the scheme remains sustainable while helping New Zealanders grow their retirement savings. Whether you are just starting out, nearing retirement, or somewhere in between, here's what you need to know and how it might affect your financial plans.
Lifetime Book Club: Four Thousand Weeks by Oliver Burkeman
In a world obsessed with productivity hacks, endless to-do lists and squeezing more out of every day, Burkeman offers something radical: acceptance. Not of defeat – but of reality. Because when you really look at it, four thousand weeks (roughly 80 years) is all we’ve got. And no app or bullet journal is going to give us more.