Newsletter – May 2022

This month we unpack diversification. Diversification is a strategy to lower investment risk by spreading money across and within different asset classes, such as shares, bonds and cash. It’s one of the best ways to weather market ups and downs and maintain the potential for growth.

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

Recent Bank Failures: Looking through the headlines to find perspective.

Our theme this month is the inflation taming efforts of the Reserve Bank of New Zealand and the link between inflation and interest rates.

This issue explains recency bias, a phenomenon whereby investors let short-term performance influence their decisions, and ways to counter this, instead seeing the silver lining in market volatility.