Market & Portfolio Update - April 2023
Global share markets had another positive month in April, rising 1.6% in local currency terms, as investors were encouraged by the latest round of company financial results. Of the companies that have reported to date, the majority have exceeded earnings expectations, with particular strength seen in large tech names such as Alphabet and Meta.
Following the collapse of two small regional US banks in March, we saw a third US regional bank (First Republic) come under pressure toward the end of April. Ultimately the US regulators took control of First Republic Bank and sold it to the much larger and well-capitalised J.P Morgan.
New Zealand’s annual inflation rate fell from 7.2% to 6.7% in the first quarter of the year. While still well above the Reserve Bank of New Zealand (RBNZ) target rate of 1 – 3%, it was lower than many economists were expecting.
Undeterred by the better-than-expected inflation rate, the RBNZ raised the OCR an additional 0.5%, taking New Zealand’s benchmark interest rate to 5.25%. Current market expectations are for one more hike to 5.5%.
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.