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US tapering uncertainty means a lot of volatility lies ahead

Published: Fri 28 Jun 2013 01:16 PM
Tony Alexander Weekly Overview
US tapering uncertainty means a lot of volatility lies ahead.
Welcome to the June 27 Weekly Overview.
A full pdf copy of the Weekly Overview is loaded here.
No Youtube this week sorry given electricity supply disturbances and stuff.
New subscribers can be added to the emailing list here.
Lead Article – The Tapering Shock
Expect high volatility in asset prices for the next year as speculation waxes and wanes regarding the speed of US money printing tapering.  419 words
Interest Rates
US rates are rising and so too are fixed rates here.   264 words
NZ Housing Market
A Chinese newspaper journalist sent through a long list of questions regarding Kiwi attitudes toward Chinese house buying. I answer them! 2,093 words.
Offshore
US data have been good this week, apart from a weak GDP revision last night which caused a small scaling back in expectations of an immediate start to the tapering exercise.  1,079 words.
Exchange Rates
Same as last week. Tapering talk has pushed the USD up and the NZD down. Volatility will be at times extreme in the coming year as tapering gets underway – or not – then ends – or not.   224 words
Some things are best kept private - introduction to BNZ Private Bank
If you would like to speak with one of our Private Bankers to review your personal situation, feel free to contact us for a discreet obligation free discussion on 0800 477 077 or email us at privatebank@bnz.co.nz.  To find out more about BNZ Private Bank, please visit www.bnzprivatebank.co.nz
Tony Alexander produces six regular publications.
The monthly Growing With China issues arehere.
The monthly Brain Gain NZ can be located here.
The Weekly Overviews are loaded here.
The monthly BNZ-REINZ Residential Market Surveys are posted here.
The monthly BNZ Confidence Surveys are available here.
The monthly BNZ-Nine Rewards Consumer Trends Survey is here.
Other recent publications include the following.
The Cyprus Haircut
Sources of Western Apprehension About China
Expat Experiences of NZ Hiring
Advice from NZ employers to expats and migrants
19 Reasons Why Auckland House Prices Will Keep Rising. Page 5 of
Massey University Symposium Handout on Housing Affordability
Kiwi Business Locus of Control at a Distance
All the best
Tony Alexander
Chief Economist
www.tonyalexander.co.nz
LinkedIn Profile
TonyLinkedIn
ENDS

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