Kapiti Financial Advice Limited – KiwiSaver and Investment
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
November was another strong month for sharemarkets which set aside geopolitical events (the ongoing war in Ukraine and the escalation of conflict in the Middle East) in favour of a settled election outcome in the US and the prospect that inflation is easing. The US sharemarket has focused on Trump’s business friendly policies of lower … Read more
After a tumultuous month for global financial markets, global equities ended the month of August in positive territory and global interest rates moved lower. In the US, corporate earnings started to broaden out from the large technology companies. Locally, a reduction in interest rates is a positive development for the New Zealand share market. The … Read more
July witnessed several market moving events leading to high levels of volatility. Except for large cap US technology companies, which declined in value over the month, the volatility was generally to the positive side with both fixed income and equity markets delivering positive returns. Events over July included a surprise French election result, dramatic developments … Read more
Global sharemarkets rose in June, led higher by the US sharemarket, with US US technology companies continuing to lead the way. European markets fell amidst heightened political uncertainty across Europe. NZ’s sharemarket fell -1.2%, reflecting the ongoing weakness in the local economy. Companies exposed to the local economy continued to underperform. Australian equities rose 1.0% … Read more
Share Markets Global share markets rose 3.7% in May, reverting to their upward trend Favourable economic data in the US, UK and Europe, a successful US earnings season, and falling longer term interest rates supported the rise in global share markets. AI remains a key feature. Nvidia’s better than expected profit announcement provided a big … Read more
The resilience of the US economy, robust corporate profits, enthusiasm around artificial intelligence (AI), and the prospect of central banks reducing interest rates later in the year have pushed global markets higher. New Zealand’s share market gained 3.3% in March, primarily on positive global investment sentiment and lower longer term interest rates. The global economic … Read more
2024 could see revival of dividend stocks and a better balance in share market perfomance Investors sought dividend-paying stocks in 2022 mindful that interest rate hikes by the US Federal Reserve could weigh on bonds (higher yields drives bond prices lower). But in 2023 dividend stocks fell out of favour: As interest rates rose to … Read more
As expected, the RBNZ raised the Official Cash Rate (OCR) by 50 basis points to 3.0% this week. The Bank also raised the future track for the OCR, forecasting a peak of 4.1% by mid 2023, slightly higher than in the previous May Monetary Policy Statement. The Reserve Bank upped their forecasts for non-tradeable inflation … Read more