Newsletter – September 2022

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.

This month we discuss currency – the opportunities a weaker New Zealand dollar creates for your investments and how we cushion against currency volatility.

This month we take a deep look at SRI vs ESG investing. A growing number of investors want to encourage companies to act responsibly in addition to delivering financial returns. ESG and SRI are often used interchangeably, but have important differences.

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 covers the devastation caused by Cyclone Gabrielle underscores the importance of geographical diversification.

Our theme this month is Trump vs Harris – what the different parties are offering and how the US Presidential election may affect the markets.