Market & Portfolio Update - September 2022
September was another volatile month for global financial markets, as central banks reiterated how far they are willing to go to get inflation back to long-term target levels. For example, in the US, this caused interest rates on bonds to rise by around 0.70%, weighing on the returns of bond investments. Share markets were also volatile, as investors came to grips with higher interest rates and slowing economic growth.
While volatility like this can be unnerving for investors, financial markets experience these kinds of events from time to time.
The New Zealand dollar tends to fall during periods when financial markets are volatile, supporting the value of unhedged overseas investments. This is exactly what has happened this time, with the falling New Zealand dollar resulting in unhedged global share investments performing 15% better over the past 12 months than if the foreign currency was hedged or locked in.
Lifetime Book Club: Stillness is the Key by Ryan Holiday
In a world that rewards speed, noise, and constant movement, this book offers a different perspective. One that suggests clarity, better decisions, and a more meaningful life do not come from doing more. They come from slowing down.
This is not a productivity hack or a call to retreat from real life. It is a thoughtful reminder that stillness is not weakness. It is a strength.
Mastering the New Year: The Psychology, Power, and Precision of Goal Setting
For many, the beginning of a new year signifies a fresh start, a blank canvas upon which we can paint our aspirations and ambitions. Goal setting is not just a yearly ritual; it is a powerful tool that empowers individuals to strive for personal growth, achieve milestones, and lead more fulfilling lives.