The NZ Recovery is Underway: Why 2026 is the Year for a Fresh Approach

There is a palpable sense of change in the air. After a challenging period for NZ over the last few years, the signs are increasingly clear that New Zealand has reached the bottom and is now leading into a recovery phase. For many Kiwis, this shift is a welcome signal to stop playing defense and start planning for a brighter future.

Why the Outlook is Improving

We are seeing several key economic pillars move back into alignment, creating a stronger foundation for growth:

• Export Recovery: The trade balance is finally changing in favor of our exporters, helping New Zealand re-engage with global markets.

• The Power of a Lower Dollar: A weaker NZD is providing a significant boost to our local businesses and farmers, making our exports more competitive.

• Interest Rate Shifts: With our interest rates now lower relative to Australia and other parts of the investing world, the cost of capital is becoming more manageable and it will be bringing down mortgage costs.

• Talent Returning: Migrants are coming back, bringing the skills and population growth necessary to fuel the next stage of our economy.

  
  

Learning from the Property Correction

For a long time, the standard Kiwi investment strategy was "bricks and mortar" above all else. However, the recent large property correction has been a sharp reminder of the risks of over-concentration. We’ve woken up to the fact that investing all our eggs in that one basket isn't the wisest decision.

As the saying goes, "once bitten, twice shy." This isn't about being against property, it’s about being smarter with how we manage risk. The goal for 2026 should be developing a diverse portfolio of bonds, shares, ETFs, and managed funds to complement your property investments, rather than relying on them exclusively.

Building Your Own Safety Net

Relying solely on your home and KiwiSaver can leave you with few liquid assets and a real lack of diversification. Building a portfolio outside of these areas provides true financial independence:

• Flexibility: It gives you funds to fall back on in times of need, rather than being completely dependent on the bank or government policy.

• Balance: Managed funds and ETFs allow you to capture global growth that isn't tied to the New Zealand market.

• Security: A diversified approach ensures that if one sector dips, your entire retirement plan doesn't go with it.

  
  

Plan for a Great Future

Let’s use 2026 as the year to reset. The recovery is starting, and by broadening your investment horizons, you can build a resilient, independent future. Whether you are planning for retirement or just want more control over your finances, now is the time to ensure your portfolio is as diverse as the opportunities ahead. Feel free to reach out if you want to have a quick Zoom call to discuss your options.

And Happy New Year

From Josh @ Eversure Wealth