The year that was: 2009 – the great stabilisation - Editor If 2008 was ‘The Great Deleveraging’ following the near death experience of the global financial system, 2009 could be described as ‘The Great Stabilisation’. As difficult a year as it was, it never reached the depths predicted by the most pessimistic of forecasts with the worst fears of a Great Depression to match that of the 1930’s having been averted.
Unproductive assets - Caglan Bagci, NZIJ Mortgages Obviously I am a fan of property as an asset class. I help people grow their wealth through investment in property on a daily basis. Most of my personal wealth has also been created through property investment. So it pains me somewhat when property is referred to as an unproductive asset. Unfortunately it is true in the sense that aside from offering shelter or a space for a business to operate from, it does not create any other outputs or employment. Obviously there is the initial effort and resource used to create a structure of some sort but beyond that it just sits there.
So you're going out on your own? - David Pine, NZIJ Risk Management If you have recently decided to become self employed, welcome to the club ! You are part of a world wide trend. Self employment brings immense satisfaction but there are potential risks that you haven’t had to face as an employee. Insurance can protect you against some of those risks.
Monetary tightening and the recovery in growth assets - AMP Capital Investors • After very strong gains in sharemarkets (and other growth assets) from the lows in March last year, the experience after past bear markets suggests rougher and more constrained gains ahead.
• This reflects a transition in the investment cycle. We have moved from the ’sweet spot‘ to a somewhat tougher environment where shares are more dependent on earnings growth, but momentum in leading growth indicators peaks, and cost pressures and interest rates start to rise.
• But while this may cause gyrations and more constrained gains, the broad trend in shares and other growth assets is likely to remain up. We are still early in a typical bull market, earnings growth is likely to be strong and global interest rates are likely to remain low.
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