Markets rallied across the board in the September quarter as interest rates were cut by central banks.

The US economy has continued to perform well whilst in NZ and many other countries growth remains weak.

Global equities on a NZD hedged basis had the strongest return at around 30% in the year to June, followed by global listed property and infrastructure.

Bond market performances were also strong with returns over 10%.

Geo-political risks are ever present

They can cause large short-term declines in markets but are very difficult to forecast.

Over the longer-term markets recover even though there can be enduring economic and sectoral impacts.

Russia’s invasion of Ukraine had a larger initial impact on equity markets, except Russia, they have now more than recovered.

For investors, diversification and time are the key tools for managing geo-political risks.