On Point

It was a very strong week for sharemarkets in most regions, with confidence interest rate cuts are just around the corner growing and financial markets responding positively. The Swiss National Bank cut its policy interest rate on Thursday, becoming the first central bank with a G10 currency to do so. This followed the Federal Reserve's unchanged guidance for three rate cuts in 2024 (despite some...

Short-term deposits are offering great value to investors right now, but don’t get content. Within the next six months interest rates could start falling, and after the first cut they’re likely to keep going lower. If that happens, investors will be facing much less attractive reinvestment rates and a declining income stream. Rather than waiting for the herd to catch on, savvy investors should tak...

Central banks will be in the spotlight this week, with monetary policy decisions due in Japan and Australia on Tuesday, then in the US and UK on Wednesday and Thursday respectively. All eyes will be on the Fed following last week's hotter than expected inflation figures, with investors likely to focus on the latest projections and the dot plot, which will show where Fed officials see interest rate...

Property investors are set to benefit from changes to interest deductibility rules, which will kick in at the end of this month. The Government is reversing changes that were implemented under the previous regime, which meant interest costs could no longer be considered an expense come tax return time. What might that mean for prospective investors, and with less headwinds will the housing market...

The highlight of the coming week will be the US consumer price index on Tuesday. After a hotter than expected release in January, markets will be watching for any further upside surprises or signs price pressures are more persistent than hoped. This will be the last major release ahead of next week's Fed meeting, as markets get increasingly confident the first rate cut of this cycle will come with...

The local reporting season wrapped up last week and while it wasn’t terrible, we saw a lacklustre set of releases and company updates. Many of our listed companies are still doing it tough against the backdrop of a sluggish economy, high interest rates and waning consumer demand. Which companies fared worst and why, were there any brights spot, and what does this tell about the economy and the inv...

Last week was another good one for global sharemarkets, with further highs for indices in the US and Japan, and solid performances elsewhere too. The key event was the Reserve Bank decision here in New Zealand, where the Official Cash Rate was left unchanged and forecasts suggested the next move will be down. Looking ahead, the key economic release will be the US monthly jobs report on Friday, whi...

As we look ahead to the US presidential election in November, many will be pondering how this might influence the investment outlook. The election is eight months away, but March is an important month on the US political calendar. Next week Super Tuesday should tell us what we already know - that we’re headed for a Biden vs Trump contest, the first since presidential rematch 1956. Two days after t...

The S&P 500 in the US rose 1.7% last week, closing at a new record high partly on the back of another very strong result from NVIDIA. The chipmaker and key AI exposure rose another 8.5% last week, which sees it up 59.2% so far this year (following a 238.9% gain in 2023). European and Japanese shares were also strong, both rising 1.4% as indices in both regions hit fresh peaks. The Nikkei 225 i...

Some investors baulk when they see a high share price, but they shouldn’t. A company’s share price tells us absolutely nothing about whether it’s expensive or cheap and if anything, it can often be a sign of a strong track record. Don’t be put off by high share prices, or the illusion of value that can come from a low price. Dig a little deeper and consider each investment on its merits. Some of t...

Monetary policy will remain in focus this week, with the minutes of the last Federal Reserve meeting due for release as well as the ECB's account of its January meeting. Flash PMIs are out on Thursday in most of the major economies, and these will provide useful insights into how economic activity is tracking this year. Locally, retail sales will be a highlight on Friday, while we'll see the resul...

What a week! We saw the S&P 500 sharemarket index in the US rise another 1.4%, closing at a fresh record high and pushing through 5000 points for the first time. There was also plenty of action in New Zealand, as wholesale interest rates rose to a three-month high on the back of strong economic indicators and a bold OCR call from the ANZ economics team. The Reserve Bank will be in focus this week,...

The US market has had a stunning run over the past year or so. The S&P 500 index peaked in January 2022, before declining 25.4 per cent over the following nine months in the wake of rapidly increasing interest rates. Since those October 2022 lows, the market has rebounded 40.5 per cent. In recent weeks it’s surpassed the peak from two years ago, moving past 5000 points for the first time. Agai...

Bitcoin took a big step forward last month, with the Securities and Exchange Commission in the US finally giving approval for exchange traded funds to begin trading on the sharemarket. BlackRock’s iShares Bitcoin Trust (IBIT) quickly emerged as one of the favourites, passing US$1 billion in investor inflows within just five days. This trend could well continue, and there could be a large pool of n...

The S&P 500 in the US rose another 1.4% last week, closing at fresh highs on the back of impressive earnings releases (including a very strong one from Meta) and robust economic indicators. The US market has started the new year where it left off in 2023, having gained 4.0% barely a month into 2024. Other sharemarkets performed well, with the Australian ASX 200 posting a very strong gain of 1.9% a...

It’s starting to look like the US Federal Reserve might’ve done the impossible (or at least the very rare) and achieved a soft landing. If that’s the case, there’s no need for these high interest rates to overstay their welcome and cause an unnecessary recession. For investors, this would make for a much more attractive backdrop. It could mean markets perform better than many expect from here, and...

Last week was a very good one for world sharemarkets. The S&P 500 in the US posted a 1.1% gain, having hit a new record high this month as inflation and economic indicators added to confidence a soft landing can be achieved. European shares surged 3.2% last week, the UK market rose 2.3%, and the Australian ASX 200 posted a 1.8% gain. The local market also had its best week since early November...

Short-term deposits are offering great value right now, but don’t get too content. Within six months interest rates could be headed lower, and after the first cut they’re likely to keep falling. If that happens, investors will be facing much less attractive reinvestment rates and a rapidly declining income stream. By the second half of this year, money could be moving back toward other assets amid...

Should I pay off the mortgage faster, or use that extra cash to invest? This is a very common question, but it’s especially relevant today. Mortgage rates are at 15-year highs, with borrowing costs at levels many homeowners won’t have experienced before. Paying down the mortgage as quickly as you can is sensible, and it’ll set you on the path to financial freedom. However, it’s not black or white...

Welcome back to On Point in 2024. In our first new episode of the year, we'll ponder some of the key questions investors are asking themselves at the moment. Will interest rates finally start to fall, can the housing market rebound continue, and how will sharemarkets both here and offshore perform in 2024? Let's discuss and debate some of the potential answers.

If you’re lucky enough to have a bit of surplus cash at the moment, it’s a difficult time to think about putting it to work. You want your hard-earned capital to work productively, but it’s scary to think about venturing into financial markets (or any asset class, for that matter) with your savings. Jumping in boots and all could be unwise, while sitting back and waiting for perfect conditions to...

This was a popular episode from 2023, and its messages are still very relevant for newer investors, as well as those with more experience. Take a listen if you missed it the first time around, or simply remind yourself of these timeless investing concepts! One of our least favourite sharemarket analogies is when it’s said to be just like a casino. While some traders might treat their portfolio lik...

2023 is done and dusted, and while it was challenging at times, as well as eventful, it ultimately proved to be a very lucrative year for investors. Some of the key stories included faster than expected declines in inflation, an interest rate rollercoaster, and the emergence of AI as a prevalent market theme. Join us to reflect on all of this and more in this episode that details asset class retur...

We’re on the home stretch, and 2023 has been a surprisingly good year for investors. Conservative assets have returned to form with a five per cent gain, while world shares have also been strong, returning almost 20 per cent, which is well above the long-term average. In contrast, the local sharemarket has been a notable laggard, with the NZX 50 flat with just two weeks to go. Looking ahead to 202...

Last week was another good one for investors, with shares and fixed income rising further. The S&P 500 in the US posted a 0.2% gain, finishing at its highest level since March 2022, while the local NZX 50 rose 1.1%. Not only was that the sixth consecutive weekly gain (the longest winning streak in more than a year), but it saw the index move back into marginal positive territory on a year-to-d...