On Point

This will be another monster week one, with some major US economic releases, two global central bank meetings and a busy political calendar. The US midterms will be a highlight, before the New Zealand election this coming Saturday. If that wasn't enough, some 140 S&P 500 companies and many others from across the world are due to announce earnings.

It’s not just policymakers, consumers and prospective political leaders who should pay close attention to inflation. Investors also need to be very mindful of how it can impact their holdings and erode their returns. When you’re investing, what you’re really trying to do is maintain (and hopefully grow) your purchasing power. That means you need a clear understanding of the “real” return you’re making on your money.

It's a big week ahead, with the Reserve Bank expected to hike the OCR again, as well as monetary policy decisions in the US, Europe and Japan. Earnings will also be in focus, with close to 180 S&P 500 companies due to report. We'll hear from Alphabet and Microsoft on Wednesday, as well as Amazon and Intel on Thursday and many others in the days ahead.

We’ve seen a bit of a wobble across financial markets this last week or two. For many investors, the response to any setback has become almost automatic. You buy the dip. But what happens if that strategy stops working?

It was a mixed week for global markets, as investors became increasingly concerned about rising oil prices and worries that tech companies were borrowing too much for the AI buildout. US crude rose another 10% finishing at US$101 a barrel, while Brent crude hit $110. The S&P 500 was down 2.0%, while the tech sector slipped 6.4% and the Philadelphia Semiconductor Index slumped 11.4%.