December delivered a mixed bag for markets – modest gains in growth assets, slight declines in bonds, and a very strong finish overall. As we step into 2026, two key themes for investors to consider stand out: staying focused on long-term goals despite short-term noise, and rethinking personal diversification beyond local assets.
Volatility rose in November as the long-running "everything rally" lost momentum, revealing clear winners and losers. As markets become more nuanced heading into 2026, three priorities stand out: AI's impact on the macro economy, the effect of rising leverage on the investment boom, and the need for a granular approach to building truly diversified portfolios. Read more in the November Wrap Up.
A disciplined, long-term investment process is key to success. We start with a diversified base portfolio that balances risk and return, then actively adjust to changing market conditions with a medium-term outlook. Short-term risks are managed early, adding protection when it's sensibly priced - because it's better to buy umbrellas when the sun is shining than wait for the storm. Read about recent changes to ASB portfolios.
New Zealand’s weak economic growth, highlighted by a 0.9% GDP decline last quarter, has weighed on local shares and the New Zealand dollar. This underlines the importance on building well-diversified portfolios, including offshore assets and currency exposure, to help deliver stronger risk-adjusted returns over time.
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