This quarter’s Investment Market Review looks at the key highlights in the markets over the last three months. Although there is continuing concern around China’s growth figures, this is put into perspective with past market movements in Asia. This also comes on the backdrop of a generally robust global economy, particularly in the US, with diversified portfolios performing better than most news headlines would suggest. The quarter also saw low inflation pressure both the Reserve Bank of New Zealand and Federal Reserve in the US to lower interest rates.
Our report also highlights the role that emotions and psychology can play in investment decision making, particularly in the short-term. However, evidence supports the merit of maintaining both a long-term outlook and a disciplined approach in portfolio management.