Investment Environment

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What is universal basic income?

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Universal Basic Income (UBI) is a form of social security, in which each citizen of a country periodically receives an unconditional payment of money, either from a government or another public institution, in addition to any income the citizen may obtain from elsewhere.

The main idea is to ensure that every person receives a minimum amount of income so that no one has to live in poverty.

In the Twentieth Century, economists and civic leaders called for the institution of UBI, in order to build a “floor” or minimum income for each citizen. During the Great Depression, Louisiana Senator Huey Long gained some traction with his “Share Our Wealth” plan that sought to guarantee that each household had at least one-third of the average family wealth. During the same period, several economists, including Paul Samuelson, John Kenneth Galbraith, and James Tobin called on Congress to adopt “a national system of income guarantees and supplements.”

The debate has started, people have started considering something along these lines, to be part of the debate you can arm yourself with information and click here to read more.

Dave CroenDave Croen is a credit and market risk management and strategy executive with strong analytical, research, quantitative and macroeconomics background

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Weekly Video Commentary

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Each Week Jonathan York records a few minutes of video discussing his views on recent econonomc and financial events affecting New Zealand Investors.

If you can't view them below you can view them YouTube. If you subscribe to our YouTube chanel you will be sent notifications as new videos are posted.

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Trump drops TPP and starts making his mark

Bay Financial Partners Video Comentary


Bay Financial Partners Video Comentary
Bay Financial Partners Video Comentary
Bay Financial Partners Video Comentary
Bay Financial Partners Video Comentary
Bay Financial Partners Video Comentary
Bay Financial Partners Video Comentary

Bay Financial Partners Video Comentary
Bay Financial Partners Video Comentary
Bay Financial Partners Video Comentary
Bay Financial Partners Video Comentary
Bay Financial Partners Video Comentary
Bay Financial Partners Video Comentary
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Christmas Shopping Tips for Guys

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giftgreen1Most of us guys are useless at Christmas shopping. Here's a few tips I've picked up over the years.

  • Buying your Christmas presents at a petrol station or dairy on Christmas morning really isn't the done thing - apparently not everyone wants a funnel, box of biscuits or a car care kit. Don't do it.
  • First thing in the morning is the best time to shop, and I mean first thing, teenagers are still in bed.
  • It's not the thought that counts, it's how much thought that counts.
  • Cash is a GREAT present for teenagers - and me.
  • If you must give gift vouchers make sure they are from a shop the recipient actually shops in.
  • Wrapping and cards are important, you and I know it's just paper but for some reason it's important.
  • Check before you start browsing that the shop you're in does gift wrapping and accept the service - wait if necessary.
  • Even if every present you buy is gift wrapped, buy some wrapping paper and sellotape, you're going to need it because dairy's and petrol stations don't gift wrap.
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3 things to think about in volatile times

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Here are three things to think about if you already think things have been going pretty well:

  1. man at lecturn Being overconfident.
    As many investments over the last five years have worked out ok, many clients begin to feel confident about their ability to predict where returns will come from – or pick future winners. Strong performance of your investments during a rising market isn’t always an indicator of skills. It’s how we behave and how your investments perform during times of market distress that are the signs of a good investor, and a good portfolio.
  2. Underestimating the benefits of diversification.
    Diversification may sound old fashioned, and returns from multi-asset, risk-managed funds may appear ordinary compared to the hottest sector of the moment. In reality, true diversification across a number of sources of risk and return remains a smart strategy for spreading investment risk in good times and bad.
  3. Being swayed by recent events.
    We are wired psychologically to give undue weight to the most recent events, but investment mistakes occur when you make decisions based just on recent market events. With the GFC still fresh in the minds of many investors, global shares were shunned as being “too risky” a few years ago. Now that global shares have had three very strong years of returns, many investors are interested in them, yet the best returns have possibly been made. Instead of chasing yesterday’s winners, and reacting to the most recent and dramatic news, it’s best to remain patient and stick with the strategy that was determined to be most likely to achieve your long-term goals.

We often go to considerable efforts to maintain the belief that we’re in control in situations where we really aren’t. It’s the same for investments: no one truly knows what lies ahead in the market. The best we can do is plan for a range of different possible market outcomes, not get overconfident, be swayed by headlines or forget the fundamentals of good investing strategy.

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3 Investing Home Truths

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The markets are always volatile – jumping about from one day to the next as they swing on sentiment. Here are the basic home truths any long term investor needs to always bear in mind, and which keep all the short term noise and volatility in perspective.

Your investing timeframe matters – not anybody else's

When markets swing in the short term it is because other people with different timeframes need to act. If your time frame is different, then you don't need to act at all – other than perhaps looking to take advantage of their despondency or short term desperation to sell assets at a discount.

The greatest gains come from the riskiest assets

Investing in sharemarkets involves risk. The downside can be abrupt and look drastic...but the upside is just as drastic and often quick. Historically it is one of the best performing asset classes for those who ride the wave. Similarly, property investing with leverage – borrowing to buy an investment property – introduces sometimes dramatic gains and losses. These riskiest assets are the ones which will generally produce outstanding returns for the patient investor over a reasonable time frame though.

Remember to think big picture

What happens in the short term in any particular investment often doesn't matter enormously if you have a well constructed portfolio. It is the well constructed portfolio which matters more than what happens with any individual investment within the portfolio. Stay focussed on the big picture: getting the long term balance right of how much should be in what types of investments, and then trying t manage the proportions to stay about right.