Market & Portfolio Update - June 2024
Global share markets had another positive month, ending June up 2.9%. This caps off a strong first half of the year, with global share markets up 16% year to date. The technology and semiconductor sectors have been large contributors to the market gains on the back of robust earnings and rapid increase in spending on data centres and semiconductor chips that help train and produce AI Models.
Bond markets were relatively muted in June, with both New Zealand and global benchmarks relatively flat for the month. Uncertainty remains in the timing of central bank rate cuts, although The Reserve Bank of New Zealand acknowledged inflation may reach their 1-3% target band earlier than expected, potentially indicating a rate cut before the end of 2024.
New Zealand’s first quarter GDP number was released during the month, revealing a 0.2% expansion of the economy. Behind the headline GDP number reveals stark differences between sectors. The utilities sector saw the strongest growth, while the construction industry was weakest and actually contracted during the quarter.
Using Your Home to Grow Your Wealth: How to Leverage Equity to Buy a Rental
You have worked hard to buy your home. Paid the mortgage, watched the value rise, and chipped away at the balance over time. Now you might be wondering: can this be the foundation for something more?
If you have built up equity in your home, the answer might be yes.
Market & Portfolio Update - July 2025
The global share market (represented by the MSCI World Gross Index) was up +4.2% in NZ dollar terms in July as the Trump administration finalised several trade agreements, including with Vietnam, Japan and the EU. Although these new tariff rates are significantly higher than the average rate before Trump’s presidency, equity markets responded positively to the fact that the new agreements reduce the risk of an escalating trade war.