Kapiti Financial Advice Limited – KiwiSaver and Investment
October was characterised by US-China trade tensions and increasing concerns over the sustainability of the AI investment boom. Nevertheless, global equity markets demonstrated resilience, buoyed by strong corporate earnings, central bank’s interest rate cuts, and the prospect of increased government spending in Japan and Europe. New Zealand’s sharemarket rose 1.9% in October, boosted by lower … Read more
Research published by Russell Investments concludes that the total value of an adviser in New Zealand is approximately 4.7% in 2024. The firm advises that this is substantially higher than the typical fee charged by advisers and a validation of the holistic service they provide to clients. It is a function of their ability to … Read more
Global equity markets moved higher in September on better-than-expected US economic activity data, AI optimism, and a reduction in the US federal funds rate. Global bond markets benefited from the lower federal funds rate and longer-term interest rates fell on soft US employment data. The New Zealand sharemarket moved higher on improved investor sentiment as … Read more
Global sharemarkets rose 2.2% in July. US markets led the way on favourable corporate earnings updates, particularly better than expected profit updates from the technology giants Microsoft, Apple, Alphabet, and Meta. Microsoft’s value rose to over US$4 trillion following its profit update. Apple reported strong revenue growth, helped by consumers rushing to buy iPhones ahead … Read more
A calming of trade tensions between the US and China, a quick resolution to the Israel – Iran conflict, and the prospect of the US Federal Reserve (Fed) cutting interest rates allowed US share markets to rise in June. As the year progresses US policy uncertainty is expected to diminish as the Trump administration focusses … Read more
Global financial markets were calmer in May, following extreme volatility in April. The US S&P 500 Index led global sharemarkets higher, gaining 6.2%. There is a risk that no clarity is gained on the outcomes of trade negotiations by the end of the year. It is also possible that Trump will persevere with his Liberation … Read more
Global financial markets experienced a very unpleasant start to April as US President Donald Trump unveiled larger than expected “reciprocal” tariffs on countries around the world. As the month went on things got better. Global markets stabilised and recovered after Trump called for a 90-day pause for the reciprocal tariffs. In the final wash, Global sharemarkets … Read more
Melville Jessup Weaver have released their MJW Investment Survey March 2025. The survey discusses the impact of the US trade policy which caused understandable nervousness in the first quarter. Market volatility began to rise around the end of February and peaked for the quarter in early March. Subsequent events in early April, following President Trump’s … Read more
Uncertainty regarding US trade and tariff policy is likely to continue for some time, which will be unsettling for markets. Expect a period of back-and-forth negotiations which may bring further positive surprises for markets. Other developments may also bring relief for global equity markets, including: Central banks continuing to reduce interest rates, particularly in Europe, … Read more
Following a strong start to the year, global share markets drifted lower in February, on US policy uncertainty and the fading of the AI euphoria that drove US share markets higher in 2024. US policy uncertainty means the outlook for share markets is mixed. Despite recent weak data, the US economy remains resilient, corporate earnings … Read more