What does an elevated Equity Risk Premium mean for investing?

Despite talk of a bubble, Australasian equities are not expensive, particularly when compared to bonds.

A transition continues to cyclical and growth stocks

Harbour Monthly Commentary: Economic growth is likely to remain sluggish in New Zealand next year but investing in certain secular themes such as healthcare is likely to produce good results.

New Zealand's first foray into inflation-linked bonds fizzled but the latest offering has been heavily oversubscribed, thanks in part to very attractive pricing.

Generating Income In a Low Interest Rate World

Since it was announced that Graeme Wheeler would become the new Governor, there has been endless speculation about whether he will be an inflation ‘hawk’ or an inflation ‘dove’.  

The US Federal Reserve's unprecedented monetary policy moves have left markets torn between short-term growth risks and longer-term inflation risks, with low yields making global bonds unattractive.

Reporting season results have been in line with expectations in Australia and New Zealand, boosting both share markets, but resource companies are starting to suffer from falling prices.

In their latest fixed interest commentary Harbour Asset Management's Mark Brown and Christian Hawkesby assess the latest developments in Europe offer some thoughts on the Reserve Bank's next move.

In its latest fixed interest commentary Harbour Asset Management argues that quantatative easing will be the key factor driving the market this year. However at some point the US Federal Reserve will need to be cautious about withdrawing the drug from the patient.

Harbour Asset Management asks the question whether to invest in domestic or international fixed interest markets at the moment. See what it has found out here.

The flow of global data has been well above consensus in recent months. The build up of better economic prospects has step by step forced markets to consider a world significantly different to that expected for much of 2011.

Returns on the NZ Corporate A-Grade Index outstripped other major credit indices in 2011. The running yield on the index was supplemented by the capital gain from the fall in prevailing market interest rates.

New Zealand shares were among the better performers during November, a month dominated by the European debt crisis and, closer to home, the General Election.

The European sovereign debt crisis remained the main driver of global fixed income markets during the course of October, continuing the theme that dominated markets over September.