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.
Financial Planning: Mapping Out Your Financial Goals
When was the last time you sat down and not only set some goals, but mapped out the best way to ensure they are achieved? Goal modelling is more than just financial planning - it’s a roadmap to achieving what truly matters to you. It’s getting answers on what you could be achieving in life, and the best way to get there.
At Lifetime, we go beyond just the numbers to understand your life stages, your aspirations and your personal values.
Lifetime Book Club: Start With Why by Simon Sinek
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