Optimistic view of New Zealand equities likely to continue [+VIDEO]

Sweetman said that the motivation for investors to include New Zealand equities in their portfolio: strong dividend yields and a relatively stable business and political environment – are unchanged.

New Zealand’s swift and effective containment of the virus (so far) and the government’s willingness to provide fiscal stimulus, as demonstrated by yesterday’s announcement of a $50 billion COVID-19 Recovery and Rebuild Fund, means New Zealand could be back in business faster than many other countries, said Sweetman.

“Apart from an initial plunge, the New Zealand sharemarket has stayed strong throughout the course of the pandemic to date,” he said.

“Investors, including the many overseas investors that have come into the market in recent years, seem to be looking through the factors that would otherwise generate considerable volatility – perhaps recognising that New Zealand remains much better placed than many other countries,” said Sweetman.