I thought I would share my thoughts around the potential parity between our dollar and the Australian dollar. In brief, this is great if you want to invest or holiday in Australia but a disaster for the New Zealand economy. Australia is our second most important export market. It might be great to be able to buy Australian goods cheaply however this is not going to help an export lead economy.
But there is an opportunity and smart, informed investors will take advantage of this. For example, $100,000 in bank deposits will earn around $4,500 (gross) at 4.5% compared to a potential 26% return by investing in quality Australian shares now. There is risk involved in investing in any share market, but with good research and good timing (and some luck) this is an opportunity not to be missed.
At WealthDesign we purchase independent research on the Australasian share market. We always back up our recommendations with this third party information.
If you want to be an informed investor and take advantage of the strong New Zealand dollar, you know where to find me!
John Barber