http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11791477
Mark Lister (head of private wealth research at Craigs Investment Partners) discusses investments and the year ahead in his on NZHerald column.
(This column is general in nature and should not be regarded as specific investment advice)
Our thoughts at Eden Perich Prewett follow…
2017 poses to be a year of uncertainty and change:
- Political ( US & NZ Elections)
- Financial (rising interest rates, lending restrictions)
- Exports (trade barriers, tariffs)
- Rising inflation
- Wage pressures
It challenges us to ask ‘what can we do to be prepared?’. Here are some suggestions:
- Carry sufficient working capital to cover temporary downturns (what are your overheads for the next 30-90 days?)
- Keep stock levels under control (what is your current stock turnover?)
- Ensure you live within your bank covenants (what are they?)
- Reduce debt aggressively (what is your loan to equity ratio?)
- Keep debtors under control (do you measure your “Debtors Days”?)
- Have robust financial systems such that trends in earning can be pick up early and adjustments made (do you monitor your results monthly?)
- Talk to your advisors about your business, tax commitments and trends in the wider economy
At Eden Perich Prewett, we believe with any change there is always opportunity – call us to find out how we can help you be on your toes and be prepared this year!
