On Point

Last week was another strong one for US shares. The S&P 500 in the US posted its fourth consecutive weekly gain, with a rise of 0.4%.That sees it up 12.0% this year, 20.2% above than the October lows and at the highest levels since August. Looking ahead, this week is shaping up as a busy one. Three major central bank decisions are looming, with the Federal Reserve in the US set to be the main...

Should I pay off the mortgage faster, or use that extra cash to invest? This is always a 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 whit...

Last week was another strong one for US shares, with the S&P 500 rising 1.8% to its highest level since August 2022. Investors celebrated a resolution to the debt ceiling debate, as well as evidence of slowing inflation and an easing labour market. The S&P 500 has rallied 11.5% in 2023, or 17.0% in New Zealand dollar terms! Looking ahead, it will be a holiday-shortened week here in Aotearo...

The Reserve Bank of New Zealand (RBNZ) and the Federal Reserve in the US both increased interest rates again last month. You can never be sure, but that could’ve been the final increase from both central banks. RBNZ projections imply as much, and while it’s unclear whether the Fed will move again, many economists believe it too has done enough. What does this mean for investors, and will it prove...

It will be a holiday-shortened week in the US and the UK, with both markets closed on Monday. However, there's still plenty for investors to keep an eye on! The US debt ceiling debate will remain front of mind, after news over the weekend of a tentative agreement that could support investor sentiment. On the economic front, we will be watching the ISM manufacturing index and jobs report in the...

World sharemarkets have been remarkably calm in recent weeks, despite plenty of uncertainty around. Inflation is still stubbornly high, nor is it completely clear how much further interest rates will rise. We’ve also got the small matter of the US debt ceiling to resolve. Former Federal Reserve Chair and current Treasury Secretary, Janet Yellen, has said the country might be unable to pay all of i...

After all the excitement of Budget 2023, this week we’ll see how the Reserve Bank of New Zealand feels about a little more stimulus than many had expected. The Official Cash Rate is almost certain to increase on Wednesday, although it will be interesting to see how much further the Bank sees it going after that. It’s also a busy week on the corporate front, with several earnings releases to keep a...

Artificial intelligence, or AI, is one of the hottest topics around at the moment. We've all heard of ChatGPT, which can help you with your homework or write a pretty good anniversary card for your spouse. Apparently. Many industries are at risk of being disrupted by these advances, potentially leading to some jobs becoming less relevant, or even obsolete. At the same time, the innovations and...

There are several important economic releases to monitor this week, including US retail sales and Chinese activity indicators for April. On the central bank front, Federal Reserve Chair Jerome Powell is speaking on Friday and the minutes from the most recent Reserve Bank of Australia meeting will be of interest across the Tasman. Here in New Zealand, the highlight of the week will be Budget 2023 o...

We got some fresh unemployment figures last week, for both New Zealand and the US. In both cases, the upshot was that the labour market is still extremely tight and wages are still rising solidly, albeit at a slower pace. Against that backdrop, it’s hard to believe a recession might be on the doorstep of either country. Things can’t be that bad when everyone has a job and the labour market is stil...

Banking sector woes, worries about the US debt ceiling and a string of interest rate hikes from the world's central banks are keeping markets nervous at the moment. Over the coming week we've got the Australian budget, a crucial inflation report out of the US, and more international earnings releases as the reporting season winds down. Find out what all this means for investors, and what y...

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...

The month of April proved to be another strong one for equity markets across the world, ensuring that the run of good returns investors have enjoyed since late 2022 continued. However, we are entering a period that is typically more challenging. Looking to the week ahead, there is plenty to keep investors busy. This week, we’ll be watching central bank decisions in Australia, Europe and the US, wi...

The eagerly awaited Inland Revenue tax research report was released on Wednesday. Revenue Minister David Parker has suggested this provides evidence the super-wealthy are paying much lower tax rates than many ordinary New Zealanders. It's not quite as simple as that, and we don’t yet know how the Government proposes closing this gap (if it does at all), but tax policy looks set to be a key bat...

In this week's podcast Mark Lister, Investment Director, discusses New Zealand's lower than expected inflation in the March quarter and what it means for investors. He also previews a busy five days ahead, which will see the release of business confidence and an important tax report locally, as well as GDP figures out of the US and a plethora of earnings releases from some international he...

In this podcast episode, Mark Lister, Investment Director, will explain the difference between nominal returns and real returns and why investors need to be mindful of the differences when looking to grow their capital over the long term.

In our podcast this week, Mark Lister, Investment Director, discusses how global sharemarkets have staged a strong rebound of late. Despite a lot of volatility this year, the first three months of 2023 have been very lucrative for investors that have held their nerve. There’s plenty to watch in the days ahead, with the Reserve Bank likely to be a local high. While another hike in the Official Cash...

In this podcast episode, Mark Lister, Investment Director, discusses how it’s been a difficult ride for all investors, but particularly those who are relatively new to investing. Their experience will have been punctuated by a slow, depressing decline in asset prices, which almost certainly feel disconcerting. That’s due to unfortunate timing, but there are a few things newer investors should keep...

In this podcast episode, Mark Lister, Investment Director, discusses how the last couple of weeks have been extremely volatile. Silicon Valley Bank and Credit Suisse may not be the last casualties of the sharp rise in interest rates, but there could be a silver lining in all this for investors.

In our podcast this week, Mark Lister, Investment Director, discusses how stability returned to global sharemarkets last week, as fears of a banking crisis subsided and the end of the central bank monetary policy tightening cycle drew nearer. Looking ahead, this is the final trading week of the March quarter, and investors will be keeping a close eye on an important inflation release in the US, as...

In our podcast this week, Mark Lister, Investment Director, discusses how the collapse of Silicon Valley Bank roiled markets and the risk of contagion has reverberated through other parts of the global banking sector. We also saw evidence of cooling US inflation and a weaker than expected GDP report here in New Zealand. Looking ahead, the US Federal Reserve has a tough call to make this week as it...

In our podcast this week, Mark Lister, Investment Director, discusses how it was a rough week for global markets, with some strong words from Fed Chair Jerome Powell and then the collapse of Silicon Valley Bank (a leader to tech start-ups in the US) denting sentiment. We discuss what this means for the outlook, and look ahead to the latest US inflation figures and the New Zealand GDP report in the...

In our podcast this week, Mark Lister, Investment Director, discusses how it was another action packed-week across financial markets, with the S&P 500 breaking a three-week losing streak and the US 10-year Treasury yield pushing back over 4%. The reporting season might be over, but there’s plenty to keep investors busy in the day ahead, including central bank decisions in Australia, Canada and...

In this podcast episode, Mark Lister, Investment Director, discusses how February was a busy month for financial markets, both offshore and here in New Zealand. After starting the year on a high, we saw some caution creep in and many markets finished the month in negative territory. Let's recap the key events of the month, what they mean for the outlook, and consider some of the things we need to...

In our podcast this week, Mark Lister, Investment Director, discusses how world sharemarkets were down, after a hotter than expected inflation report in the US. We also had another hike in the OCR, and many more earnings releases from a range of New Zealand companies. There’s plenty more coming up this week, so tune in to find out what you need to keep an eye on in the days ahead.