Market & Portfolio Update - April 2024
After a strong start to 2024, global share markets cooled off in April as investors weighed up future expectations on the outlook for interest rates and inflation. Despite this modest pull-back, global share markets are up 7% year to date.
Global bond markets also eased in April, as US inflation data came in slightly higher than expected. At 3.5%, the US inflation rate is significantly lower than its peak of 9.1% in 2022 but remains above the US central bank’s 2% target. As a result, investors tempered their expectations for interest rate cuts later in the year.
Turning attention back home to New Zealand, the economy is showing signs of slowing growth, with unemployment ticking up to 4.3% and GDP growth at near zero levels. Despite persistent sticky inflation, the slowing economy should ease the inflationary pressures and allow the Reserve Bank to consider cutting interest rates eventually.
Positively, New Zealand also achieved its first trading surplus since May last year. A strong rebound in kiwifruit and apple exports after Cyclone Gabrielle’s devastation last year was the lead driver for New Zealand’s 12% surge in exports.
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.”