News and Articles on Finance and Investing

Property Price Expectations

Property has produced extraordinary investment returns for New Zealanders over the last decade. Many investors see the high returns that have been fuelled by declining interest rates. Until recently, the average house price increased by more than 30%, fuelled by ........

The Letter to the Reserve Bank - and what it means

In November 2020 Hon Grant Robertson wrote a letter to the Reserve Bank of New Zealand essentially requesting that they control house prices. Unfortunately ..... 

US Elections - what does history tell us about returns?

The data shows that capturing the long-term returns of the capital markets does not depend on which party controls the White House .......

The Value of Advice Quantified in a Survey

The Financial Services Council surveyed 2,000 New Zealanders in March 2020 and found that people that had advice received on average 4% better investment returns and had 3.7% more in savings. Find out what this means long term .......

The disconnect between the Economy and Share Markets

We watch a number of webinars from various sources to stay on top of investment knowledge and financial markets. Its not often we recommend to clients watching these as they are often technical and adviser focused. This webinar is the exception. Dr Apollo Lupescu, discusses the current share markets and why there appears to be a disconnect between the markets and economies as a result of the unprecedented nature of the Covid-19 pandemic.

Business will never go out of business, Covid-19

2nd April 2020
While the impact of Covid-19 on world economies has not fully played out and portfolios have dropped; in my opinion, we are not seeing a freefall in share markets ........
 

Richard Thaler wins Nobel Prize - Behavioural Finance

What can we learn from Thaler's research in attitudes and behavioural finance?  Do investors behave rationally or irrationally .......?

David Booth on Forecasting Returns?

Instead of looking into a crystal ball to determine where to invest, consider the historical stock market and stick to investing fundamentals ......
 

The MONIAC - hydro computer?

The MONIAC computer in the New Zealand Reserve Bank museum is a delightful hydro-mechanical model explaining how money goes around in the economy ....
 

What does History Tell Us about Share Markets?

This graph shows how the longest recorded share market index, the Dow Jones Index reacted to events between 1896 to 2016 and how human innovation always trumps fear  .......
 

The 'Right Time to Invest Myth'

When markets are rocky some investors tell their advisers they would prefer to wait until things are 'more settled' before committing their money.  The problem is ....

Randomness of Returns in Different Markets

These two videos look at returns across a broad range of investment markets and asset classes to see if there is any pattern. The result is ............

Fund Managers Rarely Outperform the Market for Long

The Economist wrote "sheer luck is as good as past returns in predicting future performance".  The big investment shift of recent years is from active to passive ...

Billionaire David Booth's Investment tips for New Zealanders

Investment guru and co-founder of Dimensional Fund Advisors visited New Zealand to talk about his mission to change people's lives through investments, reports Richard Meadows. When a billionaire gives you ....

Why you Should Not be Afraid of Market Volatility

When share markets are up one day, noticeably down for the next week, then appears to be traveling upward again, only to spiral downward again, that's what financial advisers call share market volatility. Should you be concerned?
 

Eugene Fama Wins Nobel Prize - Efficient Market Hypothesis

The 2013 Nobel Prize in Economics was awarded to Eugene Fama, with two others, for laying “the foundation for the current understanding of asset prices” ...