News - 16 February 2009

The Alpha Update

TINA and TTWP

Some clients and other associates that I have met since Christmas have expressed sentiments of gloom and disaster at the current economic climate and outlook for the coming year. The question arises...HOW DO YOU STAY POSITIVE FOR THE YEAR AHEAD?

Remember TINA: There Is No Alternative. Many of the factors that are influencing our markets and our lives at present are completely beyond our control. You have 2 choices as to how you deal with these factors... Let them overrun you and think "woe is me, the sky is falling in, etc, etc"; or ignore them and get on and deal with the factors you can influence, thinking "how can I find new clients, save costs, take advantage of the opportunities that exist, etc, etc"

Decide that there is no alternative except to deal with the current environment as it is and get on with life and business. You will save yourself a lot of lost sleep and anguish!

Secondly, Remember TTWP: This Too Will Pass. We are fortunate to have ready access to economic history of the world over the last 100 years or more. This history shows that the effects of such monumental events as the Great Depression, the Oil Shocks of the 1970's, and the 1987 Sharemarket Crash (and aftermath) did eventually pass. Whilst it was very tough dealing with life during this time, things did eventually get better. Like many say when babies move through the early stages of development (sleepless nights, toilet training, etc, etc)..."it's only a phase, it will pass" The current environment is also "only a phase" It too will pass!!

Who do you know who needs an objective external expert to help them see the wood for the trees? Get them to Call Us Today on 021 676 747 or 0800 676 747 for an assessment of their situation and an action plan.

Food for Thought

Success is the natural consequence of consistently applying basic fundamentals

What's New??

• Hear Business Icon Tony Falkenstein speak!! Watch your mailbox for further details.....
• A small rise in some interest rates

If you or anyone you know wants to know more about any of these products, email Stuart@alphagroup.co.nz

Interest Rate and Currency Comments

Interest rates have been relatively static over the past fortnight, with only minor changes downwards by the non bank lenders. An interesting move on Thursday with ASB increasing their 3, 4 and 5 year rates from the market leading low rate of 5.95% by 0.1%, 0.2% and 0.3% respectively. It will be a time of wait and see between now and March 12 (next OCR review) unless there is a major adverse event in the US or UK.

The kiwi seems anchored around 50 US cents and 80 Australian cents at present, swinging up or down by 2-3 cents, but not breaking out of this pattern. There remains significant skepticism over the latest US bailout package of $800,000,000,000 ($800 billion, yes that's a lot of naughts!) and our currency will be guided by international prospects over the coming weeks.

(See below for latest interest and exchange rates).

The Finance Markets

As of 8am on Monday 16 February 2009 the following Interest Rates applied:
Official cash rate 3.50% (stable)
90 day bill rate 3.46% (down slightly)
5 year swap rate 4.03% (up slightly)
NZ/US Dollar 0.5223 (up)

Current Range of Interest Rates for home and investment mortgages as at 16 February 2009

Floating:
6.45% to 9.49% (stable)

Fixed For:
1 Year - 5.69% to 9.96% (stable)
2 Year - 5.88% to 9.32% (stable)
3 Year - 5.95% to 9.85% (stable)
4 Year - 6.15% to 9.72% (up slightly)
5 Year - 6.20% to 9.36% (up slightly)

For a complete table of interest and exchange rates, click here.

The information stated herein was correct at the time of release, but is subject to changes without notice.