Your Money with Mary Holm

In this episode of 'Your Money with Mary Holm,' host Jesse discusses global market volatility triggered by the war in Iran, focusing on concerns from an RNZ producer who experienced a significant drop in their US ETFs. Mary Holm responds by emphasizing that while the US market has outperformed globally since the financial crisis, its concentration in just a few high-tech giants makes it vulnerable to sharp downturns. She highlights historical patterns where the US market has underperformed the global average, citing past crashes like the dot-com bubble and the 2007–2009 financial crisis. Rather than shifting to a single 'stable' market, Mary advocates for diversification through global exchange-traded funds (ETFs) or international share funds, which spread risk across multiple countries and industries. She stresses the importance of long-term investing, avoiding emotional reactions to market swings, and gradually reducing risk if volatility becomes unmanageable. Mary also shares her personal strategy of investing in global passive funds since her 20s, underscoring the power of consistency and patience. The episode concludes with a preview of her upcoming appearance at the Auckland Writers Festival on May 16th, where she’ll discuss New Zealand’s economic future in a panel with economist Craig Rennie and journalist Rebecca McPhee. Key takeaways include: diversify globally to reduce risk, avoid trying to time the market or pick winning countries, maintain long-term discipline even during downturns, gradually shift risk levels if needed, and resist the urge to move in and out of funds based on short-term emotions. Mary’s advice centers on resilience, rational investing, and the enduring value of diversification.