Market & Portfolio Update - April 2025
Global markets began April with some volatility as investors digested “Liberation Day” tariffs announced by the Trump administration. In particular, investors feared a tariff war would lead to higher inflation, lower global growth, and the potential erosion of the historic ‘safe haven’ status enjoyed by the US dollar. However, the markets recovered a significant portion of these losses following the announcement that all reciprocal tariffs except China’s would be delayed for 90 days. Due to the volatility, global markets were down -3.8% for the month.
The NZ share market proved to be less volatile than global markets but still ended April down -3.0% nonetheless, as the ever-evolving global political environment spooked investors.
Meanwhile in New Zealand, the Reserve Bank cut the Official Cash Rate another 0.25% to 3.50%. As this was widely expected, the announcement was a non-event for markets.
New Zealand and global Fixed Interest markets were up +1.1% and +0.8%, respectively, as investors retreated to safe haven assets during the tariff volatility.
Market & Portfolio Update: February 2026
The global share market (represented by the MSCI World Gross Index) returned +1.4% in New Zealand dollar terms, despite many listed software companies facing pressure during the month. Investors are questioning how durable some software companies’ competitive advantages really are, as developments in artificial intelligence (AI) may make it easier to replicate their software. Nonetheless, the broader market tone was more resilient as investors continued to favour industries related to AI infrastructure.
Lifetime Book Club: The Almanack of Naval Ravikant by Eric Jorgenson
In a world that often confuses busyness with success and income with wealth, this book offers a different perspective. One that suggests true wealth is freedom. Freedom over your time. Freedom over your decisions. Freedom to live life on your own terms.