Monthly Market Update
Most global markets were down in local currency terms, including the US market, with the S&P 500 Index falling 1.6%.At home the NZD saw a sharp drop after the Reserve Bank of New Zealand surprised the market with a 50bp cut to the OCR, versus market expectations of 25bp.
Investing in a low interest environment
The collapse of 67 finance companies between 2006 and 2012, with a corresponding loss of $3 billion, should forever serve as a reminder to investors about the risks of chasing yield. But in the current low interest environment, this temptation could once again rear its ugly head.