In times of old, soothsayers used the entrails of animals to ‘predict’ the future. Nowadays, they use the dissected remains of failed banks.
The 6 questions to ask when choosing who manages your money
Let's image you're now in a room with a person you’ve never met. A prospective adviser. This meeting will define the course of your future. You can ask six questions. What should they be?
Recession and reset
We’re in a recession. What now?
It is important to establish that gross domestic product ‘GDP’ data is always released with a lag. We get these reports from Stats NZ on a quarterly basis, for the previous quarter. It is already three months old when we see it.
The value of time (in film, literature and investments)
If you have ever heard of the hero’s journey, you’ll know that a good story is never rushed. Consider cult classics like the first Star Wars trio, in antiquity Homer’s Iliad, or modern-day feats of technology like James Cameron’s Avatar.
The Emperor’s New Portfolio
Zero tax and zero risk sounds brilliant, doesn’t it? Unfortunately (as a retired Waikato man recently found out the hard way), if someone is offering you this deal, it’s a scam.
Wealth: What’s in a word? True wealth is more than money in the bank
There is a difference between fiscal wealth and true wealth.
When the word “wealth” crops up, it tends to be used in connection with financial wherewithal. This isn’t wrong, per se, but it can encompass so much more.
Property in 2023: Pain & (Not so Much) Gain…
CoreLogic, a leading property data provider in NZ, is reporting a 7-year high in property resale losses.
The aptly named CoreLogic NZ Pain & Gain Report shows that the proportion of property sold at a loss has crept up to 6.1% in the first 3 months of 2023.
Boring and Inflationary: Budget 2023
(Don’t) Bet Your Bottom Dollar
Generational wisdom can be helpful as it gives context to everyday life. But when it comes to financial matters, it’s best to go with proven methodology.
All Aboard the Brain Train: Next stop, Australia…
There’s a well-known jibe from former PM Sir Robert Muldoon which states that New Zealanders moving to Australia would “raise the IQ in both countries.”
Unfortunately, we can’t say the same now. We’re looking at a brain drain.
Inflation – Are We Out of the Woods Yet?
Finally… Some good inflation-related news following the latest Stats NZ announcement of inflation at 6.7%. This is down from 7.2% and might signal a slowdown from the ruthless inflationary pace we’ve seen the past few years.
Down the rabbit hole, chasing stocks
Even if you’ve been regularly contributing to your investments or KiwiSaver, you will likely have noticed a dip since 2022. Some may be thinking, “Why should I contribute if I’m going nowhere, or even backwards?”
Brick by Brick: Building Generational Wealth
Generational wealth is exactly what it sounds like; wealth (assets, property, other valuables) which is passed down by at least one generation. When you hear the term, you likely think of historic ‘old money’ examples like the Kennedys, the Rockefellers, or those with highly visible business empires like the Disneys or the Waltons.
The 300: Staying Strong in Uncertain Times
300 can have all kinds of meanings. It’s the number of articles we’ve just hit in this column, for example – a great cricket innings. Mathematically, it’s the sum of 2 prime numbers and also of 10 consecutive prime numbers. It’s also famously the number of Spartans who, against all odds, held back the masses of the invading Persian army for two days in the Battle of Thermopylae.
Investors, don’t panic over deficit headlines
We’re spending more than we’re earning overseas – to the extent that this is the largest annual account deficit to GDP ratio since records began in March 1988. The previous largest was during the global financial crisis in December 2008.
A Swiss Miss
The saga of wobbly banks continues with the private-sector bailout of First Republic, which had lost another third of its already depressed value as at 17 March.
Silicon Valley Bank: Why NZ Investors need not panic
Fifteen years is not long enough for most of us to have forgotten the pain of the GFC. However, while undoubtedly unnerving for investors, this is not shaping up to be GFC 2.0 as matters stand.
Bills, Bills, Bills...
This is the highest since February 2020, back in the initial uncertainty of covid times... Only the economic landscape is quite different.
The Case for Continual BCP Improvement
Following the unprecedented events of Cyclone Gabrielle, many businesses will have found their business continuity plans (BCP) being severely tested.
Government Funded, Locally Led
The next few years will be tough. But if the Government does it right, and nurtures a local led approach, this is an opportunity for us to come back stronger (and more resilient) than ever.
