Market & Portfolio Update - April 2021
Global share markets continued their march higher during April, rising 4% in local currency terms. Economic data has brushed off the horrid Covid situation in India and continues to surprise to the upside. Labour markets are rebounding quickly compared to other cycles and business confidence surveys sit comfortably in expansionary mode.
One theme that continues to be front of mind for investors is rising inflation around the world. Covid-19 has disrupted the global supply chain, initially causing things to grind to a halt before quickly needing to ramp back up to levels higher than pre-covid. This “whip” type effect, along with the large-scale stimulus, has resulted in inflation rates rising. We began adjusting our investments for this in the second half of 2020, by adding inflation-linked bonds in both the NZ fixed interest and global fixed interest sectors.
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.”
Lifetime Book Club: Enough by John C. Bogle
Welcome back to the Lifetime Book Club! As we wind down the year, this month’s pick is Enough: True Measures of Money, Business, and Life by John C. Bogle. This reflective and thought-provoking book challenges us to rethink what we value most, making it a perfect December read for anyone looking to reflect on the year that’s been.