Generate’s TPA Distribution Manager Paula Damen talks to Investment Specialist Greg Smith about the key market themes from September – from continued momentum in artificial intelligence and higher global interest rates to the growing political focus on the future of KiwiSaver.
Topics covered
🤖 AI remained a major market theme. Greg looks at strong gains across several technology and AI-related companies, including Meta, Micron, Lumentum and KLA, and explains why the opportunity increasingly extends beyond AI models to the infrastructure needed to power them.
📈 Central banks moved rates higher. The Federal Reserve, European Central Bank, Bank of Japan, Reserve Bank of Australia and Reserve Bank of New Zealand all tightened policy as inflation remained a key concern. Greg discusses what higher rates and rising bond yields could mean for markets.
💻 Technology earnings remain important. While valuations continue to attract attention, many of today’s AI leaders are producing strong revenue, earnings and cash flow growth. Greg explains why identifying the companies that can turn AI investment into sustainable profits remains crucial.
🇳🇿 KiwiSaver is becoming a bigger policy discussion. With different political parties proposing changes to how KiwiSaver contributions could work, Paula and Greg discuss why the broader debate is increasingly focused on participation, contribution levels and helping New Zealanders build larger retirement balances. Labour, for example, is proposing compulsory employer contributions rising to 6% by 2032, while current default employee and matching employer contribution rates are 3.5%.