InvestNow News – 19th June – Milford – What does a Trans-Tasman bubble mean for NZ?

Michael Luke – Investment Analyst – May 18, 2020

The COVID-19 pandemic has had a significant impact on economies across the globe. One of the sectors most impacted has been tourism. Not many companies can endure revenues being cut to zero for an extended period, regardless of risk management. Without the government wage subsidy, a lot of our tourism companies (which are predominantly small businesses), would have shut […]

InvestNow News – 19th June – Milford – What’s behind this market sell-off?

June 12 – William Curtayne – Portfolio Manager

The US major equity indices were off over 5% today in largest daily fall since March. The question on everyone minds is whether we are heading back to the lows or if this is a chance to buy.

Why has the market sold off?

News agencies and market commentators will be quick to point to some news event that has caused this move. But these moves […]

InvestNow News – 19th June – Morphic Performance Report – May 2020

Ethical Investing in Focus

During the month, The Australian Centre for Corporate Responsibility (ACCR) released a report that found that eight members of the Investor Group on Climate Change supported less than 50% of climate related proposals between 2017 and 2019. A number of funds also don’t release their voting records.

As both an active manager and an ethical investor, we believe your active shareholdings should be voted and where there is an […]

InvestNow News – 19th June – Nikko AM – May 2020 Investment Update

We noted last month that across all financial markets there had been a surge in returns as markets priced in the upsides from the world moving out of the COVID-19 lockdowns (both physical and economic). This momentum continued throughout May, and albeit at lesser levels than April, investors still enjoyed strong returns for the month. The New Zealand equity market rose more than 3% during the month and there was […]

InvestNow News – 19th June – Nikko AM – What purpose do financial markets serve?

2nd June – Andrew Hunt International Economist

In many countries around the World, workers are now being at least partially paid by the state and government guaranteed loans are being provided to companies that the credit markets would otherwise not lend to, given the credit risks involved and low yields on offer. Admittedly, the system is working better in some countries than others – China’s banks are clearly […]

InvestNow News – 19th June – Pie Funds – Investor Update Video – Investing in Tech

Today we were joined by Mark Devcich and we covered off these questions:

1. Why is the stock market not the economy?
2. Are we continuing the active stock picking approach?
3. Are the funds continuing to favour tech stocks?
4. What excites us about the share market going forward?

InvestNow News – 12th June – Antipodes – Growth traps: Why investors should be wary

20 February 2020 – Jacob Mitchell, Chief Investment Officer

The collapse in real yields has led to the systematic outperformance of high growth stocks, a situation in which we believe could lead to investors being caught out by growth traps.

The price performance of high growth stocks versus lower multiple stocks has never been more extreme, widening significantly over the past thirteen months as negative real yields distort the valuation […]

InvestNow News – 12th June – Harbour – A bold bounce

Hamish Pepper – Jun 11, 2020

Key Points

• Many economies, including New Zealand, are re-opening and recovering faster than expected
• High growth rates are normal after such a large contraction in activity and the recovery, so far, is partial
• Ongoing policy stimulus is expected, given the residual uncertainty

As COVID-19 infection rates slow, economies are re-opening and activity is rebounding earlier than many forecasters had expected. Government restrictions on people’s movement have eased in […]

InvestNow News – 12th June – Harbour – Beating expectations

Jun 9, 2020

Key points

• Equities continued to bounce back with the S&P/NZX 50 returning 3.3%, S&P/ASX 200 (in AUD) up 4.4% and the MSCI ACWI Index up 4.1%.
• Government bond yields settled in a low range, as the Reserve Bank’s bond buying (QE) programme offset the pressure that would otherwise have come from increased issuance.
• Australian and New Zealand earnings season so far, on balance, has delivered more upside than downside surprises relative […]
  

InvestNow News – 12th June – Mint – Portfolio Returns & Commentaries – May 2020

Market overview

Ongoing fiscal and monetary stimulus around the world, and easing of lockdown measures helped global markets rally further in May. The Japanese Nikkei led the way +8.3%, with strong performances across the USA and Europe as well. The MSCI World index rose 4.8%. The NZX50 rose 3.3% and the ASX200 4.4%. Commodity prices rose as well led by Iron Ore, Oil and Gold. Global bond yields remained […]