InvestNow News – 12th June – QuayStreet – Taking the bear by the horns
10 June 2020
Finding opportunities in volatile markets
The prospect of negative interest rates for the first time in New Zealand history will likely force many investors to rethink and possibly reset their asset allocations in the wake of the Covid-19 crisis.
“It looks very much like New Zealand is following Japan” says QuayStreet Investment Manager, James Ring, who adds that those who typically roll over 90-Day Bank Bill rates or rely on fixed term bank deposits now face a dilemma because “you’re not going to get much joy from bank deposits any time soon.”
While investors have also enjoyed “a free lunch” over the past few years with rising equity, bond and property markets, fellow QuayStreet Investment Manager, Andrew South, says the landscape currently looks completely different.
Those who bought into passive strategies such as index funds, which offered low fees and a market return may want to consider the merits of active portfolio management in the current volatile environment. “It’s a chance for active managers to shine” says Andrew.