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.
In addition we often post news updates and blogs on our web site at https://www.lyfords.co.nz/news-blog/
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/
In this quarter’s update we discuss:
Returns over the last quarter and implications for investment markets.
With Covid-19 increasingly becoming something we think of as happening in the past, a much greater focus internationally is on the post-Covid recovery. The major aspects of this are centred on the global fight against inflation and general economic resilience.
Central banks are walking a tightrope; the harder they try to reign in the inflationary pressures, the greater risk they run of pushing their economies into recession. Just how resilient the different economies can be during this transitional period will have a bearing on investment markets over the coming months.
In this update, we explore some of these matters in more detail. In general, investment markets performed creditably in the first quarter of 2023 (refer to the table on page 6), providing a welcome reward to investors who stayed calm and stayed invested.
In the feature article, we take a closer look at the impact of increasing interest rates on borrowers and outline some strategies that might be available to help offset the effects of significantly higher debt servicing costs.
In the short term we expect uncertainty and market volatility to persist until the global fight against inflation is over. Until then, investors should take a small measure of comfort that, looking into 2024, the outlook for global economic growth is starting to look just a little more positive.
As the year progresses, we look forward to updating you with the progress of investment markets and related investment insights.
Our Winter newsletter will be out in mid-July 2023. Between newsletters we often post relevant blogs under the news sections on our web sites www.lyfords.co.nz and www.uk-pension-transfer.co.nz
Blogs posted since our last newsletter:
Could sitting on the side lines pose a bigger risk this year?
Retirement villages – pros and cons (updated)
Why investing in individual shares is gambling – MyFood Bag, Laybuy
Silicon Valley Bank failure – portfolio exposure and implications
The Big Mac Index and relative exchange rates
Rental properties, are they still viable?
UK Pensions – lifetime allowance removal
Click here to download the full pdf version of this 2023.Q1 Economic Commentary – Lyford