“I say something, and then it usually happens. Maybe not on schedule, but it usually happens.”
– Elon Musk
Market commentary
October was a tough month for balanced portfolios, with global equities down 2.0% as sticky inflation dampened expectations of rapid rate cuts. Meanwhile, global bonds fell 3.4% as the looming US election further boosted interest rates.
In contrast, the local NZX50 was one of the few markets to gain in October, buoyed by a weaker NZ dollar, which fell 6.5% during the month. All eyes now turn to Wednesday’s meeting of the RBNZ’s Monetary Policy Committee (MPC), with most pundits predicting that the continued weakness in the local economy warrants another 50-point cut in the overnight cash rate—something that can’t come soon enough for property owners labouring under oversized mortgages.