Market & Portfolio Update - September 2022
September was another volatile month for global financial markets, as central banks reiterated how far they are willing to go to get inflation back to long-term target levels. For example, in the US, this caused interest rates on bonds to rise by around 0.70%, weighing on the returns of bond investments. Share markets were also volatile, as investors came to grips with higher interest rates and slowing economic growth.
While volatility like this can be unnerving for investors, financial markets experience these kinds of events from time to time.
The New Zealand dollar tends to fall during periods when financial markets are volatile, supporting the value of unhedged overseas investments. This is exactly what has happened this time, with the falling New Zealand dollar resulting in unhedged global share investments performing 15% better over the past 12 months than if the foreign currency was hedged or locked in.
Lifetime Book Club: Die With Zero by Bill Perkins
“The goal is not to die with the most money, but to live the richest life.”
That is the central idea of Die With Zero. From the start, Perkins makes it clear this is not a book about saving, investing, or retiring early. It is about using money, time, and health to create a meaningful life now, not someday.
The Rise of Ethical Investing
Ethical investment, also known as Socially Responsible or ESG (Environmental, Social, Governance) investment, is about putting your money where your values are. These investments allow you to support companies and industries that aim to make a positive impact, whether that’s reducing carbon emissions, promoting fair treatment of workers, or driving social change.