InvestNow News – 12th June – QuayStreet – May Monthly Market Update

INTERNATIONAL MARKETS

Risk on!

The benchmark MSCI World Index (NZD) rose 4.4%, building on last month’s rally. The defining theme for the month was the return of growth. Over the course of the month, the market moved from pricing in reflation to pricing in the combined impact of reopening and stimulus on growth. In the US, equities were buoyed by comments from several influential US Fed governors. St. Louis Fed President Bullard declared […]

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 – 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 […]

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 – 5th June – AMP Capital – Market Watch June 2020

Greg Fleming – Head of Investment Strategy

Strong returns during April and May have put markets on a firm footing going into the middle of the year, despite deteriorating economic data around the world. Greg breaks down the rebound across key asset classes and discusses our positioning for the coming months, as well as the sectors set to benefit, as economies slowly start to re-open following the […]

InvestNow News – 5th June – Pie Funds – CIO Report: In May, even laggards performed

5th June 2020

May was another month of strong returns for equity markets…

IT’S (NOT) THE ECONOMY, STUPID

May was another month of strong returns for equity markets and now some markets, such as the technology focused Nasdaq, are trading at record highs and well above where they started the year. This highlights the unpredictability of markets how they turn far before the economy does and the difficulty of predicting […]

InvestNow News – 5th June – Pie Funds – Market Watch Episode 43: Pandemic, unemployment, riots – nothing rattles Wall Street

8th May 2020

InvestNow News – 5th June – Pie Funds – Market Watch Episode 43: Pandemic, unemployment, riots – nothing rattles Wall Street.

InvestNow News – 5th June – Pie Funds – A Message from Mike: Running Back

5th June 2020

Mike’s update on the May rally which presented plenty of opportunity and broke some Pie records

Lock Down to Stocks Up

If April was about opportunity then May’s theme was recovery

Last month, I talked about how a crisis represented both risk and opportunity. Hindsight shows COVID-19 has so far provided investors with some fantastic opportunities in late March and April 2020, if you were willing to accept the […]

InvestNow News – 29th May – ANZ Investments – The Weekly Snapshot

Global equity markets recorded solid gains last week as optimism rose over the easing of lockdowns and some hopes on the COVID-19 (coronavirus) vaccine front. For the week, in the US, the S&P 500 rose around 3%, while tech stocks continued to outperform with the NASDAQ gaining nearly 3.5%. Meanwhile, in Europe, the FTSE rose 3.3%.

In New Zealand, the NZX 50 ended a three-week winning streak, ending the week down around […]

InvestNow News – 29th May – Harbour – Negative rates – An option for the RBNZ, but not its preference

Hamish Pepper – May 25, 2020

Key Points

• The RBNZ continues to entertain the idea of a negative Official Cash Rate (OCR) to provide additional economic stimulus
• There is global precedent, but the associated lower policy efficacy and financial stability risks cause much debate
• A negative OCR cannot be ruled out and keeping the option open is likely helping to anchor short-term interest rates and […]