Market & Portfolio Update - May 2020
Share markets across the world continued to recover solidly during May, looking ahead to a gradual loosening of restrictions, and have now recovered much of the March sell-off. The range of Booster’s core diversified funds have now delivered moderate gains over the past 12 months, a pleasing outcome given the volatility we have seen. While it would be premature to conclude that the world is out of the woods yet, the recent market recovery highlights the importance of sticking with a carefully chosen investment plan when markets are volatile.
However, the market recovery has not been even. The share market values of businesses that are more vulnerable to a period of disruption have still been most negatively affected. Our active investment choices in areas like healthcare firms, and a focus in our global shares on companies with solid cash income has helped support returns. Selectively supporting NZ companies looking to raise capital has also provided good opportunities at attractive prices. From here, we remain focused on staying adaptive, as worldwide policymakers tackle the balance between ongoing economic disruption, the pace of easing lockdown measures, and the length of economic support required to ultimately get the global economy moving again.
Do You Have a Toxic Relationship with the Phrase “Treat Yourself”?
The phrase “treat yourself” has become a modern mantra. It’s a great way to celebrate a milestone, reward a job well done, or break free from your everyday routine. However, when it comes to our bank accounts, treating yourself can sometimes cause more harm than good.
One small indulgence leads to another, and before you know it, the lines between self-care and overspending blur. You might walk away from the register with a bag in hand but a sinking feeling in your stomach. Sound familiar?
Scroogenomics at Christmas: Finding Joy Beyond ‘The Extravagance’
Gazing through the dimly lit windows of his modest office, Ebenezer Scrooge pondered the modern-day Christmas, “Ah, Christmas – each December, a tide of frivolity sweeps the world, with consumers collectively parting with an estimated $1 trillion globally on holiday spending.”
Reflecting on this, the Scroogenomist wonders, “What if Christmas were not marked by gaudy extravagance, but by acts of kindness? A season where gifts are not measured by their price tags, but by the care and thoughtfulness behind them. A handmade scarf, a heartfelt letter, or simply the gift of time – all these carry more value than gold. How uplifting it would be if people prioritized what truly matters: love, compassion, and the joy of giving.”