The time is ripe to diversify wealth, says NZIER – Investment Quarterly, September 2015

16 September 2015

The month of August 2015 provided a salutary reminder of why equities and other growth assets command a risk premium. Markets fell over 10% and intra-day market volatility rose to levels not seen since the GFC period. The NZ dollar continued its slide.

The corrections in equity and currency markets have moved prices much closer to our estimates of fair value. In the June NZIQ we saw the NZ dollar as being materially over-valued, we now assess it to be around fair-value. We also assessed equities to be moderately expensive in most markets. We now assess global equities to be slightly cheap, with Europe and Emerging Markets offering better value than the US, UK and New Zealand markets.

Read the full media release here.

The New Zealand Investment Quarterly (IQ) provides wholesale investors and investment fiduciaries an independent assessment of the broad investment opportunity set in New Zealand. The assessment can be regarded as truly independent because the NZIER does not earn income from the management of assets or investment transactional services.

Read about NZIQ subscription options here.

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