Market & Portfolio Update - August 2024
Global share markets witnessed a bout of volatility early in the month, driven predominantly by weaker-than-expected US employment data and the Japanese central bank raising interest rates by 0.25%. Japan’s share market fell -12% in a day as a result, its largest single-day fall since the Black Monday crash of 1987. Global share markets, represented by the MSCI World Index, also shared in the volatility, but to a much lesser degree. The second half of the month saw Global share markets stage a strong comeback as investors digested the release of more favourable economic data; the MSCI World Index ended the month up almost 2% in local currency terms, while Japan’s share market ended the month down only -0.7%.
Back home, while investors largely expected the Reserve Bank of New Zealand (RBNZ) to cut the OCR by 0.25% during the month, the market was surprised by the RBNZ’s consideration of a more significant 0.5% cut. The market welcomed this as an acknowledgment of the RBNZ’s pivot and reaction to the country’s weakening economic conditions.
Within the New Zealand share market, healthcare and property sectors had a particularly strong month. These sectors tend to be more rate-sensitive and reacted positively to the OCR cut. NZ’s largest listed company, Fisher & Paykel, also performed strongly, ending up +10% following a positive trading update citing strong demand across all products and regions.
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.