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%.
The Summer Reset
Summer has a way of easing the pressure. The days feel longer, the calendar softens, and life slows just enough to remind us that not everything needs to be urgent, solved, or optimised right now. It’s a subtle shift, but a powerful one. And it’s what we like to think of as the summer reset.
Lifetime Book Club: Ikigai by Héctor García & Francesc Miralles
“The happiest people are not the ones who achieve the most. They are the ones who spend their lives doing what they love, with purpose.”
That is the central idea of Ikigai.
This is not a hustle manual or a step-by-step guide to success. It is a gentle, thoughtful exploration of what gives life meaning, and how small, intentional choices can lead to a longer, happier, more fulfilled life.