All Posts By

Mark Fowler

Continuing to lower interest rates is a policy misstep

By | Insights
At the end of March, the Reserve Bank of New Zealand released their latest statement to the market expressing their view that ‘the more likely direction of our next official...
At the end of March, the Reserve Bank of New Zealand released their latest statement to the market expressing their view that ‘the more likely direction of our next official cash rate move is down.’ The market subsequently priced in two interest rate cuts from here and the major banks have since lowered mortgage rates. Whilst households may have breathed a sigh of relief as the cost of servicing debt goes lower, retirees and income dependent investors likely preferred to look the other way. The bigger question here is, does the state of the underlying New Zealand economy really warrant... Read more

The value of bonds in an equity market downturn

By | Insights
When equity markets are buoyant and stock market indices are seemingly reaching new market highs on a daily basis, it’s easy to question why people should advocate investing in bonds....
When equity markets are buoyant and stock market indices are seemingly reaching new market highs on a daily basis, it’s easy to question why people should advocate investing in bonds. After all, in the current interest rate environment, it’s difficult to find returns materially above four percent, and in a lot of cases, lower still. However, the last month is hopefully a timely reminder as to why we look at investing from an overall portfolio perspective, which includes multiple asset classes (equities, bonds, property and cash). The NZX50 returned -6.15% for the month of October 2018, which is the eighth... Read more