Market & Portfolio Update - February 2023
After a strong rally to start the year, global share markets gave back some of their gains in February. Surprisingly strong economic data led investors to expect higher interest rates which weighed on equity valuations. The strength of the US labour market was particularly surprising, as the unemployment rate fell to a 53-year low of 3.4%.
The strong economic data and higher interest rate outlook saw the USD appreciate 4% against the NZD. This more than offset the decline in global share markets for New Zealand based investors.
As was widely expected, the Reserve Bank of New Zealand raised the OCR by 0.5% to 4.75%, marking the 10th consecutive increase in New Zealand’s benchmark interest rate. Current market expectations are for the OCR to peak at around 5.5% by mid-2023.
February was a busy month for New Zealand listed companies. Overall results were mixed, with some companies’ results disappointing and others beating expectations. Auckland International Airport’s results were particularly well received, with revenue up 130% since last year, fuelled by a robust recovery in international tourism.
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.