Market & Portfolio Update - November 2024
The Global equity market had a strong month, up +3.8%, driven by the US. Trump won the US election early in the month, which bolstered investor optimism surrounding potential corporate tax cuts. Furthermore, expectations for de-regulation boosted the US financials and energy sector, while the industrial sector was seen as one of the main beneficiaries of tax cuts and trade policy.
Central banks globally continued to lower rates during November. England and the US central banks both lowered their respective rates by 0.25% in response to falling inflation.
Moving closer to home - the Reserve Bank of New Zealand continued their interest-rate cutting cycle, reducing the Official Cash Rate from 4.75% to 4.25%, marking the second 0.50% cut in a row. The Reserve Bank noted households and businesses have not been spending as much as usual, however, lower interest rates should encourage households and businesses to spend more, supporting economic growth. The NZ share market didn’t move much in reaction to the cut, as it was widely expected by the market. Nonetheless, the NZ share market index returned a healthy +3.4% in November, bringing the year-to-date return to +11.8%.
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.”