Newsletter – August 2022

This month our theme is ‘shock absorbers’, the strategies we employ to reduce the effects of market volatility on your investments.

This month our theme is discussing the surge in artificial intelligence (AI) investment and how this has contributed to robust returns in global equity markets.

Our theme this month is diversification. Diversifying investments can mitigate risk by balancing the ups and downs of individual shares, and individual countries to reduce their impact on your entire portfolio. A diversified portfolio is more resilient because it’s designed to capture growth while providing relative security during market downturns.

Our theme this month is interest rates. After the highest interest rates since 2008, the Official Cash Rate (OCR) was cut in August, marking the first cut since 2020. In this newsletter we outline what lower interest rates mean for your portfolio.

It’s been an eventful start to the year. Tensions have been rising between Russia and Ukraine and central banks around the world are looking to increase interest rates.

The Reserve Bank of New Zealand is getting tough on inflation. The relationship between interest rates and inflation and what this means for your investments.