InvestNow News – 7th August – AMP Capital – Taking Stock – 2020 Winter Issue
Article written by AMP Capital – 2020
The impact of COVID-19 is very different to previous periods of economic turmoil. It’s not like the GFC, which was a financial crisis with poor lending standards – our banks this time around are in good shape. It’s also not like the recession that followed the 1987 share market crash – that was driven by panic selling following a multi-year bull run. And it’s not like the Great Depression, when governments practiced austerity, reduced money supply, and literally starved economies.
New Zealand’s current recession is unique. It was on us very quickly and it is very deep. Furthermore, it was not borne of the usual build up in economic imbalances that need to be corrected. That bodes well for the recovery as economic and social restrictions are slowly lifted.
Important note: This communication has been prepared to provide general information and does not constitute ‘financial advice’ for the purposes of the Financial Advisors Act 2008 (Act). An individual investor should, before making any investment decisions, consider the information available in the relevant Product Disclosure Statement and seek professional advice. While every care has been taken in the preparation of this document, AMP Capital Investors (New Zealand) Limited and the AMP Group (together, ‘AMP’) make no guarantee that the information supplied is accurate, complete or timely and do not make any warranties or representations in respect of results gained from its use. The information is not intended to infer that current or past returns are indicative of future returns. The views expressed are those of the author and do not necessarily reflect those of AMP. These views are subject to change depending on market conditions and other factors. AMP Investment Management (N.Z.) Limited (FSP37681) is the manager and issuer of the various AMP Capital Investment Funds described in this communication. Product Disclosure Statements for the funds are available from the AMP Capital website www.ampcapital.com or by calling 0800 400 499.
InvestNow News – 7th August – AMP Capital – Taking Stock – 2020 Winter Issue
Article written by AMP Capital – 2020
The impact of COVID-19 is very different to previous periods of economic turmoil. It’s not like the GFC, which was a financial crisis with poor lending standards – our banks this time around are in good shape. It’s also not like the recession that followed the 1987 share market crash – that was driven by panic selling following a multi-year bull run. And it’s not like the Great Depression, when governments practiced austerity, reduced money supply, and literally starved economies.
New Zealand’s current recession is unique. It was on us very quickly and it is very deep. Furthermore, it was not borne of the usual build up in economic imbalances that need to be corrected. That bodes well for the recovery as economic and social restrictions are slowly lifted.
Important note: This communication has been prepared to provide general information and does not constitute ‘financial advice’ for the purposes of the Financial Advisors Act 2008 (Act). An individual investor should, before making any investment decisions, consider the information available in the relevant Product Disclosure Statement and seek professional advice. While every care has been taken in the preparation of this document, AMP Capital Investors (New Zealand) Limited and the AMP Group (together, ‘AMP’) make no guarantee that the information supplied is accurate, complete or timely and do not make any warranties or representations in respect of results gained from its use. The information is not intended to infer that current or past returns are indicative of future returns. The views expressed are those of the author and do not necessarily reflect those of AMP. These views are subject to change depending on market conditions and other factors. AMP Investment Management (N.Z.) Limited (FSP37681) is the manager and issuer of the various AMP Capital Investment Funds described in this communication. Product Disclosure Statements for the funds are available from the AMP Capital website www.ampcapital.com or by calling 0800 400 499.
