Market & Portfolio Update - April 2024
After a strong start to 2024, global share markets cooled off in April as investors weighed up future expectations on the outlook for interest rates and inflation. Despite this modest pull-back, global share markets are up 7% year to date.
Global bond markets also eased in April, as US inflation data came in slightly higher than expected. At 3.5%, the US inflation rate is significantly lower than its peak of 9.1% in 2022 but remains above the US central bank’s 2% target. As a result, investors tempered their expectations for interest rate cuts later in the year.
Turning attention back home to New Zealand, the economy is showing signs of slowing growth, with unemployment ticking up to 4.3% and GDP growth at near zero levels. Despite persistent sticky inflation, the slowing economy should ease the inflationary pressures and allow the Reserve Bank to consider cutting interest rates eventually.
Positively, New Zealand also achieved its first trading surplus since May last year. A strong rebound in kiwifruit and apple exports after Cyclone Gabrielle’s devastation last year was the lead driver for New Zealand’s 12% surge in exports.
Lifetime Book Club: Atomic Habits by James Clear
This month, we’re kicking off the new year with a game-changer for personal growth - Atomic Habits by James Clear. Whether you’re looking to save more, get fitter, or just make life a little easier, this book is the ultimate guide to creating habits that stick.
Debt Detox: Break Free in 2025
Debt. It’s heavy, exhausting, and sometimes feels like a trap you’ll never escape. You’re not alone - 59% of Kiwis say their finances have affected their mental health. But here’s the good news: debt doesn’t have to define your financial future. This year, let’s turn the tide and make 2025 the year you take control.
Here’s your step-by-step guide to detoxing your debt and reclaiming financial freedom.