Newsletter – November 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 issue covers the devastation caused by Cyclone Gabrielle underscores the importance of geographical diversification.

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.

This issue shows the methods used to support returns during periods of market volatility. Using the New Zealand dollar as a ‘shock absorber’.

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.

This issue covers our human nature of feeling twice as much pain from an investment loss as we do pleasure from a gain, and while it can be tempting to view our investments daily, the key to long-term investment success is being invested over the longer term.