Market & Portfolio Update - August 2018
Market & Portfolio Update - August 2018
August was a relatively quiet month for share markets, but with currency movements boosting fund returns. The New Zealand dollar fell 5% against the major currencies and this helped the performance of New Zealand investors with investments off shore, reinforcing the importance of global diversification.
Emerging markets (e.g. China, Brazil, Russia) were the standout share markets during August. The fortunes of these markets are typically tied to the performance of commodities as they are some of the largest producers and consumers of a number of different commodities.
We made some changes to funds’ global share investments, to improve their overall return prospects relative to risks. We sold shares in oil rig owner National Oilwell Varco, switching to the more diversified, larger oil services firm Schlumberger. We also sold shares in American Express, whose shares are up strongly over the past year, reinvesting in Visa. These changes are covered in more detail over the page.
Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular investor’s objectives, financial situation or needs. Any opinions contained in it are held as at the report date and are subject to change without notice.
Lifetime Book Club: Mind Over Money by Claudia Hammond
Welcome to the Lifetime Book Club - this month, we’re exploring the fascinating connection between money and psychology with Mind Over Money by Claudia Hammond. If you’ve ever wondered why you make certain financial decisions - or found yourself repeating money habits you wish you could change - this book is an eye-opener.
The Art of Weathering Market Turbulence
As seasoned investors know, share prices can move up and down a lot. It’s what investment professionals refer to as ‘volatility’. Sometimes price volatility may be relatively low, but over the last 3-4 weeks volatility has spiked and global shares, especially those in the US, have fallen rather sharply.