Market & Portfolio Update - October 2023
Global share markets declined 2.6% in local currency terms in October, as they were impacted by rising long-term bond yields. However, the NZ dollar also weakened by a similar amount, providing a significant offset for NZ-based investors.
The latest US economic manufacturing and employment data came in strong last month, demonstrating the ongoing resilience of the US economy. This economic resilience has been a key driver of the recent rise in bond yields, as investors anticipate interest rates will stay higher for longer.
Despite a lower-than-expected inflation figure, New Zealand’s bond yields followed global markets higher last month. New Zealand’s latest quarterly inflation report showed our annual inflation rate declining to 5.6%, which was lower than the Reserve Bank’s expectation of 6%. It is encouraging to see inflation trending in the right direction, but we still have a way to go until we reach the Reserve Bank’s desired target of 2%.
The Summer Reset
Summer has a way of easing the pressure. The days feel longer, the calendar softens, and life slows just enough to remind us that not everything needs to be urgent, solved, or optimised right now. It’s a subtle shift, but a powerful one. And it’s what we like to think of as the summer reset.
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.