Outlook for Investment Markets
Financial markets have been volatile and are likely to remain choppy as investors reassess the outlook for 2015 against a background of generally expensive asset prices. Cheaper oil is a plus, as is the growing strength of the US economy, but the eurozone remains weak, while Japan could go either way. Bond yields have fallen to even lower levels and income-oriented funds consequently have been pouring into property, though a repeat of this year's big rises in global and domestic property prices is unlikely in 2015. In New Zealand, the economy is still buoyant and it looks as if the expansion will continue well into 2016 or 2017, especially as the Reserve Bank of New Zealand now looks likely to delay interest rate rises.
Read the full article here.