Market Update

April Market Update

“The Intelligent Investor is one who sells to optimists and buys from pessimists.” Benjamin Graham NZ Property Update House price inflation is rampant in NZ with +22% y.o.y. for the period ending February 2021. This sort of growth increases the risk of a major disruption to the wider NZ economy when the $1.5 trillion property bubble finally bursts. How could we address this rising risk? Enter Prime Minister Jacinda Ardern! The biggest news in the past month for NZ investors has to be the changes to property investing announced as part of Labour’s Housing Package by PM Ardern on the […]

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March Market Update

What are we watching for? Below we have discussed several different signals that the PWA Investment Committee are monitoring to identify a suitable time to start increasing the allocation to bonds and shares as we progress through this market correction. What sort of market cycle is this? There are many letters being thrown around as to how this market cycle will play out. A “V” recovery means a sharp sell-off and an equally sharp share recovery (as seen in the 1987 stock market crash). A “U” shaped recovery means a deeper and lower for longer bottom (as seen in the […]

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June Market Update

Trade War Escalates In May we saw the markets start to price in an increasing level of uncertainty around a trade agreement between the United States and China. In April it looked as if a trade deal was only weeks away from being reached, but President Trump then fired a warning shot across the Chinese negotiators bow in his usual fashion -via a Tweet. May 5th – President Trump states the tariff of 10% will be increased to 25% on 10th May. May 15th – President Trump signs an executive order restricting the export of US technology to “foreign adversaries” […]

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February Market Update

Climbing the Wall of Worry in 2017 The term “climbing the wall of worry” has been used in many pieces of commentary from other fund managers, and market commenters over the past 6 months; but at no time is it more fitting than right now. We have seen share markets in the US reach record levels with the Dow Jones Industrial Index reaching an amazing 20,000 points; which is a return since the bottom of the GFC in 2008 of 303% or 14.87% p.a. At the time of writing this, the markets continue to trade around the 20,000 mark, which […]

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November Market Update

The Shine Comes Off the NZ Market The month of October 2016 will not be remembered fondly by the NZ fund manager community. To the period ending 28th October we have seen the NZX50 decline 8.4% from its high reached in 7th September. From anecdotal evidence we are hearing this correction is due to some profit taking by foreign investors, and/or a reduction in riskier investments by global managers as they prepare for the US election followed closely by the Federal Reserve’s December meeting, where markets are pricing in over a 70% chance of a rate rise. Global Equity Indices […]

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