After a solid first half, what might the next six months bring?

Last year was a difficult one for investors across the board. Against that backdrop, this year looked set to be another challenging one, with slower economic growth and more interest rate hikes expected to pressure markets. However, it’s hasn’t been too bad at all for investors. Here at the halfway point, world shares are up more than ten per cent, having rebounded more than 20 per cent from the lows of October last year. New Zealand investors have also seen their returns boosted further by favourable currency moves. The local sharemarket has been more subdued than most, but the NZX 50 index is slightly higher this year and is almost ten per cent above its low point from mid-2022. Looking ahead, there is some room for optimism, although there are also plenty of risks. How might the second half play out, and what should investors be thinking about?