Market & Portfolio Update - July 2023
Most global share markets were positive in July, spurred higher by the energy and financial sectors, which makes for a change from the first half of the year where technology companies drove markets.
The Australian share market rallied almost 3% on higher energy prices, as resource companies make up a significant part of that market. Global share markets were also up 3% in local currency terms; however, a weak US dollar (-1.5%) offset some of the performance for unhedged NZ investors.
The key US share market saw a number of companies report earnings for the June quarter. Overall, these results highlight the resiliency of companies amidst slowing economic growth and elevated inflation. While earnings have declined from where they were a year ago, most results beat market expectations. In particular, the financials sector performed well after a tumultuous start to the year, which saw the collapse of several small regional banks. California-based Fisher Investments, used the opportunities earlier in the year to increase their exposure to financials. This paid off well in July, with holdings like Bank of America (up 10%), Morgan Stanley (up 7%), and T.Rowe Price (up 8%), all reporting strong earnings, and their share prices rose as a result.
The Financial Realities of the Sandwich Generation
If you’re in your 40s, 50s or even 60s, chances are you’re juggling more than just your own goals right now. Maybe your kids still need your help financially – while at the same time, your parents are beginning to lean on you too.
Welcome to the Sandwich Generation – where you're caught between two sets of responsibilities, and still trying to plan for your own future. It’s not easy, but it is manageable. And the good news is, you don’t have to do it alone.
Financial Mythbusting: Demystifying Common Financial Misconceptions
In the world of finance, pervasive myths and misconceptions often mislead individuals, impeding their financial decision-making and goals. It is essential to debunk these common financial myths and equip ourselves with accurate information. This article sets out on a myth-busting journey, uncovering the truth behind misconceptions in personal finance.