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%.
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.