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%.
Do You Have a Toxic Relationship with the Phrase “Treat Yourself”?
The phrase “treat yourself” has become a modern mantra. It’s a great way to celebrate a milestone, reward a job well done, or break free from your everyday routine. However, when it comes to our bank accounts, treating yourself can sometimes cause more harm than good.
One small indulgence leads to another, and before you know it, the lines between self-care and overspending blur. You might walk away from the register with a bag in hand but a sinking feeling in your stomach. Sound familiar?
Scroogenomics at Christmas: Finding Joy Beyond ‘The Extravagance’
Gazing through the dimly lit windows of his modest office, Ebenezer Scrooge pondered the modern-day Christmas, “Ah, Christmas – each December, a tide of frivolity sweeps the world, with consumers collectively parting with an estimated $1 trillion globally on holiday spending.”
Reflecting on this, the Scroogenomist wonders, “What if Christmas were not marked by gaudy extravagance, but by acts of kindness? A season where gifts are not measured by their price tags, but by the care and thoughtfulness behind them. A handmade scarf, a heartfelt letter, or simply the gift of time – all these carry more value than gold. How uplifting it would be if people prioritized what truly matters: love, compassion, and the joy of giving.”