Inflation really weighs on returns
Given the barrage of headlines citing decades of high inflation, investors are asking how best to invest in an inflationary environment? In order to assess the current environment, it’s worth distinguishing nominal versus real rates using some examples close to home for everyone. Before you yawn and click off, here are a couple of interesting stats.
By Michael Kenealy, Senior Equities Analyst, Mint Asset Management
Over the 25 years pre-Covid19, average hourly earnings rose by 3.2%, while consumer prices eroded that by 1.9% on average each year. So, in real terms hourly earnings have grown at a compound rate of 1.2% (Dec 1994 – Dec 2019). Whilst it’s pretty hard to imagine or recall a floating mortgage interest...MORE»
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Accelerating our climate actions together
Reserve Bank Assistant Governor Simone Robbers explains why the central bank is involved in climate change. MORE »
Over the peakFriday, July 29th, 9:12AM
Sky-high inflation numbers continue to garner much attention, but are they already yesterday’s ‘fish and chip wrapper’? MORE» |
Fundamentals have gone missing in 2022Tuesday, July 26th, 10:34AM
In this article we have a look at a way of assessing the valuation fundamentals of a fund. MORE» |
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History may not repeat but it can rhymeThursday, July 14th, 6:08AM
At the start of this year, we asked the question “Is the inflation genie out of the bottle”? Looking back over the last six months, the short answer is Yes – or at least central bankers seem to think so. The longer-than-short answer is not for long. MORE» |
Are we at the turning point?Wednesday, July 6th, 6:41AM
Devon Funds head of retail Greg Smith asks if high levels of pessimism, high cash balances and depressed market multiples mean we are almost at the end of this year’s volatility? MORE» |
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Generate KiwiSaver pumps $13.7 mill into social housing
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Simplicity has dropped its membership fees from all of its products effective immediately. MORE»
KiwiSaver default funds - all you need to know
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