• After a strong finish to 2021, the first quarter has been a difficult environment for investment markets with negative returns from share, property and fixed interest (bond) markets. Persistent inflation data, which in turn requires higher interest rate settings by central banks, has upset markets. While the prospect of higher interest rates can be challenging for valuing assets, markets can quickly recover if the outlook for rates rises are steady and reasonably predictable. At the present time investors are still pricing in substantial interest rate rises and are unsure of exact timing, assuming central banks need to catch-up with the reality of inflation pressures.
    Posted: Wednesday 20 April 2022
  • This time last year the outlook had significantly improved after a daunting 2020. Not only did we have vaccine options for Covid but continued massive global monetary and fiscal stimulus largely protected economies and putting them in a strong position for further recovery in 2021.
    Posted: Wednesday 19 January 2022
  • Investment portfolios finished the quarter slightly down as markets contracted through September after starting strongly in July. The recent market pull-back is attributable to a range of rising concerns including inflation surges, global supply and manufacturing problems, energy shortages in China and Europe and Covid-19 Delta outbreaks that are putting some economies into rolling lockdowns. Though vastly improved over the last 12 months, global economic growth is still in a recovery phase from the deep recession in 2020. Global demand remains very strong. Not only are Governments continuing to spend (and borrowing to do it) but households and businesses are also catching up from lockdown inactivity and have record financial capacity to spend. This should underpin global growth and company earnings for several years.
    Posted: Monday 18 October 2021
  • It has been another solid quarter for investment portfolio performances. At the half-way point of the year, investment markets are locked on three key themes including: vaccination speed, economic stimulus, and rising inflation prospects. Governments remain focused on opening their economies back up and providing sufficient spending support while central banks are keeping their economies awash with cheap funding. Inflation is rising but presently viewed by authorities and markets as being transitory only and just reflecting the stresses and strains associated with re-opening.
    Posted: Monday 19 July 2021
  • This time last year we were grappling with the prospect of a steep recession amid the global pandemonium of Covid-19. Whoever could have predicted that there would now be 18 vaccine candidates in testing or in use today and with more candidates to come? Knowledgeable commentators at the time were saying an effective vaccine may never be developed or at best would be years away.
    Posted: Thursday 22 April 2021
  • It was with some relief that we finally got to the end of 2020. The speed of the impact of the pandemic and then the record global government spending and central bank monetary stimulus to address the ensuing world-wide recession was truly epic. After collapsing in March, investment markets rallied back their losses and finished the final quarter of the year on a strong note. Investor enthusiasm continues to be buoyed by all the government spending (and with more to come) and the promise of a sustainable economic recovery as vaccine rates now accelerate.
    Posted: Monday 18 January 2021
  • It has been another positive quarter for investment portfolios. Markets did give up some of their returns in September as a surge in global Covid-19 cases, concerns about forthcoming US elections and delays to additional US government spending weighed on investor sentiment.
    Posted: Monday 19 October 2020
  • Following a tumultuous first quarter, investment markets rose strongly and recovered much of the prior period losses. After one of the sharpest market falls in history, we then had one of the fastest market rallies with investment portfolios performing well.
    Posted: Wednesday 15 July 2020
  • It has been a most extraordinary quarter for countries, communities, economies, and investment markets. Historically sharp economic downturns and market corrections normally occur when excessive financial conditions (the Great Financial Crises) have finally tipped over or a demand or supply shock occurs. This time the global economy has been brought to a standstill by a virus pandemic, or, more accurately - by government containment responses to the pandemic. Containment means we are having both a supply and demand shock for goods and services at the same time. This is unprecedented even by war events.
    Posted: Sunday 12 April 2020
  • December quarter market returns were mixed with international and Australasian shares performing well while fixed interest investments were negative on rising longer term interest rates. Portfolio returns
    Posted: Friday 17 January 2020
  • All asset classes performed steadily over the quarter generating solid returns for investment portfolios. Central banks either cut interest rates or maintained an easier rate outlook which supported bond, property and share market returns.
    Posted: Thursday 17 October 2019
  • Portfolios continued to perform well over the quarter despite significant investment market angst over the US/China trade war, rising middle east tensions, broadening Trump trade war rhetoric and increasing concerns for global economic growth.
    Posted: Wednesday 17 July 2019
  • The quarter marked a sharp recovery in investment markets as investors bought back into cheaply valued assets and as central banks globally, but particularly in the US, signalled lower interest rate policies in response to slowing economic activity
    Posted: Thursday 18 April 2019