How to claw back returns

Monday 16 August 2004

If there is one thing that haunts stockbrokers' dreams above all else, even more perhaps than an insider trading investigation, it is a prolonged bear market where share prices fall month after month after month.

By The Landlord

Such an environment is depressing not only for the psyche but for the general process of intermediating financial markets.

For one thing, stockbrokers and financial planners are perennially optimistic.

People who sell equities are generally remunerated in three ways: from a fee on the sale of some sort of equity-based security, promoting share floats or an ongoing fee to manage a portfolio.

A bear market makes the execution of any one of these processes much more difficult. Mum and Dad, after hearing the news that stock prices have fallen, decide to leave the money safely in the bank.


Read More - Opens in a new window
Commenting is closed

Property News

Return to market form

There’s been a rallying of the market with the latest REINZ data showing both sales volumes and median house prices noticeably up with the onset of Spring.

Commercial

NZ proptech start-up scores major investor

Auckland-based commercial property disrupter, Jasper, has raised $2.3 million in seed funding following investment from European asset manager M7 Real Estate.

Mortgages

LVR limits slow down investors

LVR speed limits continue to have a "strong effect" on investors, according to CoreLogic, after the latest Reserve Bank data showed a drop in investor borrowing.

Site by PHP Developer