Market & Portfolio Update - October 2023
Global share markets declined 2.6% in local currency terms in October, as they were impacted by rising long-term bond yields. However, the NZ dollar also weakened by a similar amount, providing a significant offset for NZ-based investors.
The latest US economic manufacturing and employment data came in strong last month, demonstrating the ongoing resilience of the US economy. This economic resilience has been a key driver of the recent rise in bond yields, as investors anticipate interest rates will stay higher for longer.
Despite a lower-than-expected inflation figure, New Zealand’s bond yields followed global markets higher last month. New Zealand’s latest quarterly inflation report showed our annual inflation rate declining to 5.6%, which was lower than the Reserve Bank’s expectation of 6%. It is encouraging to see inflation trending in the right direction, but we still have a way to go until we reach the Reserve Bank’s desired target of 2%.
How to Teach Kids About Money: Building Financial Literacy from an Early Age
As parents, we all want our children to grow up confident and capable, especially when it comes to managing their money. Financial literacy is a crucial life skill that’s best nurtured from a young age. Here are some practical tips to help your kids understand the value of money and develop healthy financial habits.
Lifetime Book Club: The Rules of Wealth by Richard Templar
Hello and welcome to another edition of the Lifetime Book Club! This month, we’re exploring The Rules of Wealth by Richard Templar, a guide that lays down the principles for achieving financial success in an accessible and engaging way.