Market & Portfolio Update - June 2021
Returns on overseas investments were supported by the New Zealand dollar falling against most major currencies during the month. The US dollar strengthened by 4% in June after the Federal Reserve brought forward their expectation for hikes in the Fed Funds Rate from 2024 to 2023. Given the strength of the economic data so far this year, there is a possibility this could be brought forward again.
Global share markets were up over 2% for the month in their home currency terms, and almost 6% in NZD terms (due to the weaker NZ dollar). Pleasingly, both our active global share managers delivered significantly higher returns, with California-based Fisher investments, benefiting from their exposure to the technology sector.
The New Zealand and Australian share markets also produced solid returns for the month, although were both relatively quiet on the news front. Many of the higher growth companies were back in favour during June, with their valuations being supported by longer-term interest rates falling back a little after rising in the first part of the year.
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.