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.
Finding Your Financial Ikigai: The Japanese Art of a Balanced & Purposeful Life
In a world that often measures success in financial terms, the Japanese concept of Ikigai offers a refreshing perspective. Transcending the boundaries of culture and geography, this philosophy loosely translates as "a reason for being". Ikigai is a convergence of what you love, what you're good at, what the world needs, and what you can be paid for. It's an approach that represents a broader view of prosperity, encompassing joy, purpose, and contentment. As financial advisers, we find this particularly compelling. This article delves deeper into how Ikigai can not only enrich your life but also inform your financial decisions for a more fulfilling journey.
Lifetime Book Club: Intentional by Chris Bailey
In a world full of distractions, half-finished to-do lists, and “I’ll get to that later” energy, this book feels like a helpful nudge back to what really matters.
It’s not about doing more for the sake of it. It’s about doing the right things, with more purpose, more clarity, and a little less chaos.