Market & Portfolio Update - May 2025
The global share market (represented by the MSCI World Gross Index) was up +5.3% in NZ dollar terms during May, as consumer sentiment improved and trade tensions eased. Progress in US trade negotiations with the European Union and a temporary delay to planned tariff hikes reduced fears of a global recession and fuelled broad-based gains. While the information technology sector was one of the best performing US sectors, the rally also extended to cyclical sectors such as industrials and consumer discretionary.
The Reserve Bank of New Zealand (RBNZ) cut the Official Cash Rate by 0.25% to 3.25% during May, as largely expected by the market. The RBNZ noted they remain confident the inflation outlook is benign and are well placed to respond to developments as they unfold. Similarly, the Reserve Bank of Australia cut their cash rate in May by 0.25% to 3.85%, as anticipated.
The NZ government released Budget 2025, which contained few surprises from a macroeconomic perspective. The flagship policy for the Budget was a new rule allowing businesses to write off 20% of the value of new assets – such as machinery, tools and equipment – from their tax bill in addition to regular depreciation.
Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular person's objectives, financial situation or needs. Any opinions contained in it are held by the author as at the report date and are subject to change without notice.
The Summer Reset
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Lifetime Book Club: Ikigai by Héctor García & Francesc Miralles
“The happiest people are not the ones who achieve the most. They are the ones who spend their lives doing what they love, with purpose.”
That is the central idea of Ikigai.
This is not a hustle manual or a step-by-step guide to success. It is a gentle, thoughtful exploration of what gives life meaning, and how small, intentional choices can lead to a longer, happier, more fulfilled life.