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PWA Market Update

October Market Commentary

The joy of low interest rates As we finish another month, we have further historical events occurring. This time it is closer to home, with 2-year & 5-year government bond yields falling into negative territory for the first time in history. In September, the 5-year NZ government bond rate went as low as -0.06%. This is down from the not so attractive 0.66% six months ago. NZ Yield Curve – 18th Sept 2020 Source: The Daily Shot This has also led to mortgage rates in New Zealand dropping, which in turn is throwing further fuel on an already overpriced NZ […]

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September Market Update

Pay attention – we are in the middle of a historically significant event There is an old proverb, “May you live in interesting times”. This is falsely attributed to an English translation of a Chinese curse. The closest Chinese comparison to this saying is, “Better to be a dog in times of tranquillity, than a human in times of chaos“. Either way, there is no arguing that we do indeed live in interesting times. Since the start of the year, the world has changed in meaningful ways. We will focus below on the market related changes. Firstly, global share markets […]

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