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.
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.