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.
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.