Newsletter – July 2022

This issue covers broadening Booster’s direct investments in attractive, unlisted NZ assets – FleetPartners.

Our theme this month is interest rates. After the highest interest rates since 2008, the Official Cash Rate (OCR) was cut in August, marking the first cut since 2020. In this newsletter we outline what lower interest rates mean for your portfolio.

It’s been an eventful start to the year. Tensions have been rising between Russia and Ukraine and central banks around the world are looking to increase interest rates.

This month we unpack diversification. Diversification is a strategy to lower investment risk by spreading money across and within different asset classes, such as shares, bonds and cash. It’s one of the best ways to weather market ups and downs and maintain the potential for growth.

This issue explains recency bias, a phenomenon whereby investors let short-term performance influence their decisions, and ways to counter this, instead seeing the silver lining in market volatility.

The issue digs into what the Russian invasion means for investors.