Harbour Commentary: Tricky Turning Point

Harbour's current strategy development reflects:

• A world still in expansion but with gathering risks
• A better outlook for New Zealand growth momentum, near term, relative to Australia 
• Risks around a near term pull-back in the global commodity boom
• Increasing some NZ consumer exposure given under-performance and the rebuilding of savings
• A preference for LNG exposure over bulk commodities
• Increased growth and quality positions relative to cyclical recovery opportunities at a stock level

At turning points in growth momentum, sector returns are harder to predict. At the moment sector and stock returns are also being influenced by the extra-ordinary appreciation of the Australian dollar, weakness in the US dollar and volatility in commodity prices.

Read Harbour's research reports here: http://www.harbourasset.co.nz/html/