Lyfords quarterly newsletter reviews key financial market events that have impacted portfolio returns.
Each quarter we have an article on a financial issue we believe will interest our clients.
For clients who have transferred, or are looking at transferring their UK Pensions to New Zealand, updates relevant to this are posted at https://www.uk-pension-transfer.co.nz/qrops-news-blog/
The markets were definitely not ‘burning’ in the second quarter of 2026. Far from it. Investors in fact have plenty of reasons to be very pleased about returns over the recent few months. We draw on an analogy with fire drills.
2026.Q3 Economic Commentary – DOWNLOAD the full pdf version NOW.
Topics discussed:
Growth in the Face of Gloom
Despite geopolitical conflict, rising oil prices, renewed inflation concerns and higher interest rates, global economies and share markets proved surprisingly resilient during the September 2026 quarter.
Why Bad News Didn’t Stop Markets Rising
Markets continued to look beyond today’s headlines and focus on future corporate earnings, helping global shares deliver positive returns despite an uncertain backdrop.
Inflation Makes an Unwelcome Comeback
Higher energy costs reignited inflation pressures worldwide, prompting central banks in New Zealand, Australia, the United States and elsewhere to continue raising interest rates.
The AI Investment Boom Rolls On
Artificial intelligence remained one of the world’s biggest investment themes, driving significant spending on technology, infrastructure, data centers and energy systems.
Can AI Offset an Ageing Population?
While AI may improve productivity, developed economies continue to face the longer-term challenge of ageing populations and slower workforce growth.
Shares Advance While Bonds Struggle
Global and New Zealand share markets generally posted gains during the quarter, while bond markets came under pressure as inflation expectations and interest rates moved higher.
New Zealand’s Recovery Remains Uneven
The domestic economy continued to grow, but higher inflation, rising mortgage costs, soft housing markets and increased unemployment created ongoing challenges for households.
Exporters Benefit from Improving Conditions
Stronger dairy, meat and horticultural exports, combined with a weaker New Zealand dollar, provided a positive contribution to the economy.
Why Diversification Still Matters
The quarter reinforced the importance of diversified portfolios as different asset classes responded very differently to changing economic conditions.
Financial Literacy: The Life Skill That Compounds
Understanding money concepts such as inflation, diversification and investing can influence financial decisions that compound into significantly better long-term outcomes.
The Surprising Link Between Knowledge and Wealth
Research highlighted in the report suggests higher levels of financial literacy are associated with stronger income growth and greater savings over time.
Good Advice Turns Knowledge into Action
Financial literacy is valuable, but long-term success often depends on translating knowledge into practical decisions and consistent behaviour.
The Big Takeaway for Investors
Successful investing is less about predicting the next headline and more about staying diversified, remaining disciplined and focusing on long-term goals through changing market conditions.
Blogs posted since our last newsletter:
Monte Carlo projections used in retirement income projections explained
A lot of time and effort goes into these Newsletters to provide up-to-date information and thought provoking articles.
2026.Q3 Economic Commentary – DOWNLOAD the full pdf version NOW.