A Very Strong Quarter for Markets
The third quarter delivered excellent news for most diversified investors. International share markets posted very strong gains, many reaching fresh all-time highs. Bond markets also made positive contributions, and the combination produced attractive overall returns for balanced portfolios.
After months of speculation, the US Federal Reserve finally cut interest rates in September. Share investors welcomed the move with enthusiasm, helping propel several major indices to new records despite ongoing uncertainties around global growth and trade.
Inside This Edition
In our Market Commentary section we explore four topical themes:
- The powerful (and often misleading) influence of recency bias
- A health check on the New Zealand economy
- Where things currently stand with global tariffs
- What actually qualifies as a genuine “safe haven” asset today
Our feature article takes a lighter but very practical look at money personalities. Understanding whether you lean toward being a Saver, Spender, Avoider, or something in between can explain a lot about your financial habits. Even more importantly, recognising your partner’s money personality can prevent many unnecessary arguments! We believe every couple should read this piece.
Keeping Perspective Amid the Good Times
The past few years have been unusually rewarding for patient, long-term investors. It’s tempting—thanks to recency bias—to assume the good times will simply roll on forever. History, however, gently reminds us that markets rarely behave that predictably.
The reassuring truth is that outstanding long-term outcomes don’t require us to forecast the next quarter correctly. They only require a thoughtful, evidence-based strategy that we stick to through thick and thin. That remains our sole focus in the months ahead.
2025.Q3 Economic Commentary – DOWNLOAD the full pdf version NOW. A lot of time and effort goes into these Newsletters to provide up-to-date information and thought provoking articles.