The Inauguration of a President

On Inauguration Day, the 45th President of the United States, was sworn into office. Trump represents change and is the first populist US president since Andrew Jackson in 1829. This said, politics matter very little to markets.

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The interest rate predicament

Interest rates are the primary tool in Central Banks toolkit to bounce back from recessions. As far back as the data goes, the US Fed has always lowered interest rates during recessions.

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The fall of the middle class and rise of populism

President Obama wrote for this week’s Economist discussing “the crucial areas of unfinished business in economic policy” the next president will need to tackle and then questioned the rise of “crude populism” which promises to return the country to the past. We thought it was time to investigate this rise of populism and how it has evolved.

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Did the Clinton Trump debate raise questions for NZ investors?

Tuesday’s US presidential Clinton Trump debate saw a fresh line of attack. Trump questioned the competence and political independence of the Federal Reserve and had a stinging critique of the US economy and markets as being a “big, fat, ugly bubble”. What can New Zealanders expect from a Trump presidency?

Secretary Clinton’s criticism of Trump’s tax plans as re-hashed “trickle down” theory, it is arguably the Federal Reserve that has been the most enthusiastic proponent of this, via their implicit targeting of asset prices. Meanwhile, any disorderly “lifting of the lid” on the shortcomings of central bank policies is likely to help rather than hinder NZAM portfolios. The implication is that NZAM investors have little to fear from a Trump presidency.

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Negative interest rates… a guarantee to lose your money.

Negative interest rates: A guarantee of losing money on your investment? This bizarre concept has grown exponentially since it was first presented by several of Europe’s central banks in 2014. This was introduced in an effort to stimulate growth and quickly gained traction with global central banks – now over 34% of developed sovereign bonds […]

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