Professional Investment Services

The Best Advice From A Single Guy

This is probably not something you see everyday on a Financial Services website but it struck a chord with me, especially after all the years that I have spent with couples and sometimes walked away thinking to myself that I was a relationship counselor and in fact it is often said that a Financial Planner will spend half his time as a relationship counselor. Article starts here. Nate Bagley says he was sick of hearing love stories that fell into one of two categories — scandal and divorce, and unrealistic fairytale. So he started a Kickstarter and used his life savings to tour the country and interview couples in happy, long-term relationships. He then took to Reddit’s /r/IAmA to share what he learned (just in time for Valentine’s Day), and to post podcasts of the couples’ journeys and advice. via Here’s The Best Advice From A Single Guy Who Spent A Year Interviewing Couples | Business...

Mortgage Rates, Property and The Money Market

What do these have to do with the stock markets? Everything. You need to follow what is happening across all markets if you want to make educated stock trades. I read all I can about what is happening in the economy and this fortnightly newsletter I receive from General Finance keeps me abreast of what is happening in a specific part of the market. I think you will enjoy it too. The Money Market At 9 am on 15 February 2013 the money markets were at the following levels: Official cash rate 2.50% (unchanged) 90 day bill rate 2.67 (up from 2.65) 1 year swap rate 2.80 (up from 2.62) 3 year swap rate 3.18 (up from 2.80) 10 year bond rate 3.86 (up from 3.56) Kiwi dollar 0.8488 (up from 0.8314) Short Term Finance We currently have funding available for short term and bridging loans. This includes low doc and asset lending. The purpose of this funding can be fairly wide, refinancing of short term debts, purchase of boats, and carrying out subdivisions, to name a few. One of our more popular reasons, is to assist people bring their tax payments and arrears up to date. Our criteria are fairly wide, but we do require residential security. We welcome your enquiries. Capital Gains Tax Numerous groups are calling for a capital gains tax to be introduced. They mistakenly believe that this will slow down the property market and make housing more affordable. Over the past 3-4 years property prices have really only risen in Auckland, which is growing rapidly and in Christchurch, which is a special situation. Gains...

The Next Surge in the Gold Price Looms: It’s Time to Buy Gold Now

If you had to guess which country has stacked the most gold in its central bank in the last ten years – who would you pick? Would it be India, the world’s biggest importer of gold? Or maybe China, the biggest force in the modern gold market? Nice try, but you’d be wrong with either guess. The unexpected winner has accumulated a formidable stash – and just in time for the huge coming move in gold…   The answer is in fact, Russia. For the last ten years, Russia has been busily converting its oil revenue into gold. According to the IMF (International Monetary Fund), the Russian central bank has now stacked 570 tonnes of gold in its basement. This has seen the total jump by 147% in a decade, from just 388 tonnes, to 958 tonnes. To put that in context, the world’s biggest national government stash is the US holding of 8,134 tonnes. So the Russians may have had a busy decade but they still have a way to go. Still – Russia is hot on the heels of China’s official holdings, which had 1,054 tonnes at last count. I say ‘last count’ because it’s coming up to four years since China updated the market. So they almost certainly have far more than 1,054 tonnes by now. You only need to look at how much gold is pouring into China. Chinese gold imports from Hong Kong have soared in recent years from just a few tonnes a month in early 2011, to the interstellar pace of 114 tonnes in December of 2012. This finished off a huge...

The Next Surge in the Gold Price Looms: It’s Time to Buy Gold Now

If you had to guess which country has stacked the most gold in its central bank in the last ten years – who would you pick? Would it be India, the world’s biggest importer of gold? Or maybe China, the biggest force in the modern gold market? Nice try, but you’d be wrong with either guess. The unexpected winner has accumulated a formidable stash – and just in time for the huge coming move in gold…   The answer is in fact, Russia. For the last ten years, Russia has been busily converting its oil revenue into gold. According to the IMF (International Monetary Fund), the Russian central bank has now stacked 570 tonnes of gold in its basement. This has seen the total jump by 147% in a decade, from just 388 tonnes, to 958 tonnes. To put that in context, the world’s biggest national government stash is the US holding of 8,134 tonnes. So the Russians may have had a busy decade but they still have a way to go. Still – Russia is hot on the heels of China’s official holdings, which had 1,054 tonnes at last count. I say ‘last count’ because it’s coming up to four years since China updated the market. So they almost certainly have far more than 1,054 tonnes by now. You only need to look at how much gold is pouring into China. Chinese gold imports from Hong Kong have soared in recent years from just a few tonnes a month in early 2011, to the interstellar pace of 114 tonnes in December of 2012. This finished off a huge...

2012 NZ Round Up

The Money Market This morning (9 am on 7 December 2012) the money markets were at the following levels: Official cash rate 2.50% (unchanged) 90 day bill rate 2.65 (up from 2.63) 1 year swap rate 2.62 (up from 2.57) 3 year swap rate 2.80 (unchanged) 10 year bond rate 3.56 (up from 3.27) Kiwi dollar 0.8314 (up from 0.8165) 2012 in Review This year has been similar, in many ways, to 2011. One positive area was on the deposit side. More people are investing in the finance company sector, as they are operating under a much tighter regulatory regime. It is giving finance companies more funds to lend, which is good for those wanting to borrow. It also allows finance companies to extend their mortgage product range. The lending side is still a little quieter than most would like but we believe that the active Auckland property market in 2012 will encourage more investors, housing renovators and builders to re-enter the market in 2013 2013 Crystal Ball While it is always hard to predict the future, having interests in the finance sector allows us to spot certain trends. Things seem to be continuing in pretty much the same way as they did in 2012. A low interest environment will continue throughout 2013 which is not only apparent in the mortgage market, but also evident in the corporate and Government sectors with bond investors accepting lower yields. Unemployment will either remain at current levels or possibly get a little worse and until we start to see some real growth occurring things will remain this way. Our dollar should remain...

Buy Small Caps Now While Investors Are Crying

‘Buy when they’re crying, then sell when they’re yelling,’ could comprise Chapter One of the contrarian investor’s handbook. The idea being that when prices are well below any logical level, pushing investors past their pain threshold, forcing them to sell on an emotional basis – THAT is the time to go against the flow and snap up a bargain. And conversely, when investors are overexcited, and the forums are full of revved up punters talking about the Maserati they’re going to buy with their profits…THAT is when you sell! Right now, after close to two years of falling markets, small-cap investors are really starting to throw in the towel.   Adding insult to injury, small-caps have kept falling even as the ASX200 has picked up since July this year. This particularly lousy performance from small-caps means that small-cap investors are well behind the rest of the market. But the crying has now reached levels not seen since the death of Kim Jong-il. That suggests that now could be the time to buy… Since May last year, the ASX200 (red line) is down 8% (though recovering). In comparison, the Small Ords (yellow line) is down 23%. Another index of even smaller companies – the Emerging Companies index (XEC: blue line) – has crashed 32%. So small-cap investors have every reason to cry. Buy when they’re crying…? Well small-cap investors are crying now   Click here to enlarge Source: Google Finance   There are a few reasons why these small-cap indices have fallen despite a rising broader market in recent months. For one thing, they contain a large number of small...