April 2024 - Quarterly Investment Update

Good Afternoon,

As we don our winter attire and say goodbye to summer, we reflect on the promising beginning of the new year and the opportunities ahead. We extend our heartfelt thanks to our wonderful FoxPlan Family, as none of this would be achievable without your support.

Consilium Tax Reports Updates

These will be made available for viewing and download on the 20th of May 2024. Depending on your settings, this will either be emailed or posted to you. 

Autumn Quarterly Update

We are pleased to enclose our Autumn update covering the period from January 2024 – March 2024

At the start of 2024, diversified investors saw continued gains in international share markets. Market sentiment was influenced by changes in inflation and interest rate expectations. Initially, there was anticipation of central banks lowering interest rates, but this was scaled back due to persistent inflation concerns, particularly in the US. Central banks like the European Central Bank, the Bank of England, and the US Federal Reserve proceeded cautiously, avoiding premature declarations of victory over inflation. The Bank of Japan, however, increased interest rates for the first time in 17 years.

The global economy showed signs of improvement, with the US economy performing well, driven by consumer spending. The eurozone also saw progress, especially in manufacturing. Government bond yields adjusted as market sentiment shifted, leading to reduced returns from sovereign bond markets.

The Japanese share market experienced significant growth, with the Nikkei 225 index reaching a 34-year high. This growth was attributed to Prime Minister Fumio Kishida's economic policies, corporate governance reforms, a weak Japanese yen, and improved corporate profitability.

Gold prices surged to an all-time high, reflecting investor interest in the metal as a store of value and diversifier. However, historical data shows that gold's long-term performance has varied, with periods of significant returns but also periods of lower returns, especially when adjusted for inflation.

In New Zealand, the economy faced challenges, including mixed corporate earnings reports, a slowdown in the housing market, and rising mortgage rates. The Reserve Bank of New Zealand maintained a cautious stance on interest rates, aiming to balance inflation concerns with supporting economic growth.

Despite short-term uncertainties, the document emphasizes the long-term positive outlook for investors, highlighting historical trends of economic growth, business expansion, increased profitability, and positive investment returns over time.

Within the Autumn update, the Market Commentary section highlights the positive performance of international share markets in early 2024, influenced by factors such as inflation and interest rate expectations.

The Key Movements Section outlines the performance of the asset classes in the first quarter of 2024.

This quarter’s featured article by Consilium titled ‘The man who helped us understand the pain of losing’ honours Professor Daniel Kahneman, a Nobel laureate in behavioural psychology, for his insights into human decision-making, especially in investing. It introduces "Loss Aversion," showing how people fear losses more than they value gains, leading to irrational investment behaviours like holding onto poor investments. Kahneman's work emphasises the importance of recognising and managing loss aversion to make better investment decisions and achieve financial goals.

 For anyone who could not make it to last month’s seminars, there is still time to register for our series of in person seminars being hosted in our new offices throughout 2024. These will be focussed on Investments and SME business owners.

If you would like to learn more or sign up for the seminars, please click the button below.

 We are only a phone call or an email away should you wish to discuss anything. Please get in contact with your adviser or contact us at 0800 NO STRESS (0800 667 873) or email info@foxplan.nz if you have any questions or would like your adviser to talk through your current investment plan.

Kind Regards,
The FoxPlan Team