Outlook for Investment Markets
Global-equity investors have benefited from the markets' positive reaction to the Greek bailout agreement, and ongoing global growth remains helpful for growth assets, though with marked regional variations. A major headwind, however, is expensive valuations, especially as both US and UK interest rates look likely to rise in coming months. Locally, the economic news has generally been disappointing, the currency has weakened, and the Reserve Bank of New Zealand may be obliged to cut interest rates further.
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