Market & Portfolio Update - February 2025
The Global share market was broadly flat in February, up +0.2% in NZ dollar terms, despite news that US President Donald Trump was imposing 25% tariffs on the United States’ North American neighbors and closest trading partners, Canada and Mexico. An additional 10% tariff on Chinese imports is also expected to come into force, leaving all of America’s top three trading partners facing significantly higher barriers.
The New Zealand share market had an eventful month, with most companies reporting their half-year results. A2 Milk delivered a very strong result and announced it would pay its first-ever dividend, beating market expectations. In contrast, rest home operator Ryman Healthcare cited ongoing challenging market conditions and announced a $1 billion capital raise to reduce debt and strengthen its balance sheet.
During the month, the Reserve Bank of New Zealand continued their attempt to invigorate the domestic economy by lowering the Official Cash Rate to 3.75% (from 4.25%). While this is good news, it was largely expected by the market and didn’t cause any strong market movement on the day.
Lifetime Book Club: Mind Over Money by Claudia Hammond
Welcome to the Lifetime Book Club - this month, we’re exploring the fascinating connection between money and psychology with Mind Over Money by Claudia Hammond. If you’ve ever wondered why you make certain financial decisions - or found yourself repeating money habits you wish you could change - this book is an eye-opener.
The Art of Weathering Market Turbulence
As seasoned investors know, share prices can move up and down a lot. It’s what investment professionals refer to as ‘volatility’. Sometimes price volatility may be relatively low, but over the last 3-4 weeks volatility has spiked and global shares, especially those in the US, have fallen rather sharply.