Quality Investment Advice

Email: jmis@jmis.co.nz | Call us: +64 9 308 1450

Economic Reports

JMIS ECONOMIC & INVESTMENT MARKET REPORT - MAY 2018

Looking ahead, global markets face a more balanced set of tailwinds and headwinds than was the case a year ago. While the economic and earnings outlook remains strong, the peaking of leading economic indicators and earnings revisions suggest a more challenging environment as momentum for both slows.

ECONOMIC & INVESTMENT MARKET REPORT - APRIL / MAY 2018

Given the length of the economic recovery and period of strength from investment markets, it is important that clients’ portfolios are no more growth orientated than their long term strategic asset allocations.

ECONOMIC & INVESTMENT MARKET REPORT - APRIL 2018

While the sudden increase in market volatility in February raises concerns, we do not believe that the bull market in equities has yet come to an end.

ECONOMIC & INVESTMENT MARKET REPORT - FEBRUARY / MARCH 2018

Although we believe price pressures will ultimately remain contained in 2018 and even into 2019, there is scope for expectations of inflation to rise further as economic growth continues and central banks move towards monetary normalisation.

ECONOMIC & INVESTMENT MARKET REPORT - JANUARY / FEBRUARY 2018

Although the economic outlook is positive for 2018, we are fully aware that sharemarkets have risen sharply in recent years and valuations are high. Consequently, we will continue to monitor economic and political developments for any negative signals.

ECONOMIC & INVESTMENT MARKET REPORT - DECEMBER / JANUARY 2017

Sharemarkets remain firm: the preconditions for strength remain, i.e.global economic growth is strong and synchronised, inflation is modest, recession risks remain low and company earnings are expanding at a double-digit rate.

ECONOMIC & INVESTMENT MARKET REPORT - NOVEMBER / DECEMBER 2017

Even though the current bull market in shares is now over eight years old, we believe that the risk of an imminent global bear market is not high.

ECONOMIC & INVESTMENT MARKET REPORT - OCTOBER / NOVEMBER 2017

Although economic activity has gathered pace this year and many advanced economies are approaching full employment, surprisingly there is no general evidence of a pick-up in wage inflation around the world. Average wages growth has remained exceptionally sluggish even in countries such as Germany and Japan, where the unemployment rate is at multi-decade lows. It has actually fallen in recent months in the US.

ECONOMIC & INVESTMENT MARKET REPORT - SEPTEMBER / OCTOBER 2017

Earnings momentum is now positive for all major equity regions and we expect this to continue, supported by a solid economic backdrop. A normalising global economy should allow central banks to unwind their ultra-accommodative interest rate policies. We believe that long bond yields are set to rise further during 2017 and 2018.

ECONOMIC & INVESTMENT MARKET REPORT - AUGUST / SEPTEMBER 2017

From an economic perspective, the global economy appears to be in good heart. The environment for equities remains broadly neutral, as central banks unwind their stimulatory policies in response to improving growth prospects rather than the need to stamp out any problematic rising inflation. However, even though interest rates are starting to rise, bonds are not yet particularly attractive. A balanced and diversified approach to investment remains appropriate: as well, clients should remain close to their benchmark targets for risk control.