Market & Portfolio Update - February 2018
Market & Portfolio Update - February 2018
Share markets regained ground as February progressed, recovering most of the declines from the start of the month. While portfolios with an allocation to shares finished the month lower, the effect was much less than one might think from reading the newspaper! A Balanced portfolio finished February down less than 2%, well within the normal range of monthly results and still up close to 7% over the last year.
We bought additional shares in James Hardie, the Australian-listed building products company which continues to expand its United States presence, after seeing signs that some constraints on its manufacturing capacity were diminishing.
We also purchased more shares in Inditex, owner of the global fashion brand Zara, taking advantage of some recent weakness in the company’s share price. The purchase was offset by selling shares in Louis Vuitton Moet Hennessy, which has performed very well, leading to a demanding hurdle for future performance.
On the NZ share market, the demise of construction insurer, CBL Corporation, has been at the forefront of the media’s focus recently. It has rightly grasped their attention given only a month ago it was valued at $750 million and now it looks to be worthless. We can confirm that none of the Booster portfolios ever invested in CBL. We ran our eyes over it and couldn’t get our head around the business. Others are now coming to the same conclusion (albeit a tad late) with it seeming to be a “black box” of trouble.
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: The Green Mile by Stephen King
Sometimes the most powerful stories aren’t the ones that scare us. They’re the ones that move us.
Stephen King might be best known for horror, but The Green Mile is a story of humanity, compassion, and courage in the face of unthinkable circumstances. Set in a 1930s prison, it follows Paul Edgecombe, a death row officer, and John Coffey, a man with extraordinary empathy and an inexplicable gift.
The Growing Divide: Why Private Medical Claims Are Surging in New Zealand
It feels like there is another headline about our public health system being under pressure every week. Long waitlists, staff shortages, and hospitals struggling to keep up. It is no surprise that more Kiwis are turning to private healthcare to get the treatment they need and faster.