25.11.2022
What last week’s RBNZ announcement means
Ticking both boxes in today’s environment of decade high inflation and increasing interest rates is challenging. Over the long-term, investors want to maintain the purchasing power of their savings and need positive real returns to achieve this. The challenge is that with inflation hitting more than 7% in the last year, the investment return currently needs to be high to fully compensate for this.
This is in an environment where most asset prices and business valuations are being tested. For many equity investments, it was a one-way bet higher since the 2007-2008 global financial crisis, with an extra kick of exuberance through Covid until around this time last year.
This is in an environment where most asset prices and business valuations are being tested. For many equity investments, it was a one-way bet higher since the 2007-2008 global financial crisis, with an extra kick of exuberance through Covid until around this time last year.
Market Insights
