Outlook for Investment Markets
Markets have been focused on the search for yield as US bond yields have stayed low and European yields have headed lower. Property and infrastructure have been the main beneficiaries, while equities have been subdued, with Middle Eastern political risk also constraining equity performance. Looking ahead, well-priced investment opportunities are becoming harder to find as both bonds and equities are on historically expensive valuations. In New Zealand, the economy has been very strong and still has considerable momentum. The side-effects include higher interest rates ahead and a persistently strong currency.
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