Market commentary: Sep 2026

Client investment performance

Returns for the first 6 months were negative with share prices falling after the US invasion of Iran in February 2026. Rising prices over the second six months compensated and returns for the full year ended positive. International shares and infrastructure increased in value and fixed interest values fell due to rising interest rates. Market sentiment remains positive.

Investing in space

Investor enthusiasm for space skyrocketed recently when SpaceX launched its initial public offering (IPO). SpaceX CEO Elon Musk declared that someday they will shuttle private citizens to the moon, Mars and beyond. The IPO quickly became the largest in history. The question for investors: how do you distinguish between mere fantasy and tangible opportunities that can generate value?

Opportunity and progress
The gateway to these opportunities is a space travel eco system starting with rocket manufacturing and launching right through to ground infrastructure and satellite development.

Costs to reach low earth orbit have reduced from US$54,000 per kilogram in the days of the Space Shuttle to US$2,700 today. Rocket power is increasing. SpaceX are testing a reusable rocket capable of carrying 150 metric tons (versus about 23 tons for today’s Falcon 9 rocket).

Datacentres in space
Early demonstrations show that datacentres and other hardware can operate in orbit. Space provides access to abundant solar power and avoids the need for water and land.

National security
Not since the cold war has geopolitical competition been so focused on the stars.

In the US, NASA plans to build a new space station and a permanent base on the moon. The US Space Force is investing heavily in satellite communications, intelligence gathering, surveillance and navigation systems. In China, the Peoples Liberation Army Aerospace Force is dedicated to military space operations, satellites, and counterspace capabilities to project power and contest potential regional conflicts on Earth.

Space manufacturing and travel
Zero gravity manufacturing of cancer treatments and flights from San Fransico to Tokyo in under 45 minutes sound outlandish but as launch costs fall they become feasible. Space offers unique physical conditions that cannot be replicated on Earth - no dust or rain, heat radiates away, energy is free and unlimited.

Fascinating and exciting possibilities but our fund managers are thinking tangible investment opportunities in the space industry are at least 10 years away.

(Source: Summary of article provided by Capital Group)

Richard Grimes, CERTIFIED FINANCIAL PLANNER (CFP^CM), Director and Financial Adviser