SHARES HIT HARD,ALONG WITH HOUSEING BUBBLE?

[absolut-advance]

When the housing bubble pops how is this going to affect New Zealand share prices, will they both sink together as the economy slows due to the slow down of consumer spending etc. Will shares also be losers of this bubble? and will shares be hit even harder? Which shares could resist/ ideas please

[Halebop]

Assuming the the absolute worst happened and property tanked and impacted consumer spending then very few investments would be immune except perhaps AA+ rated bonds or similar.

In a mild downturn defensive equities/industries are normally estabished businesses in categories like: Supermarkets, Insurance Companies, Brewers / Distillers, Defence Contractors, Power / Water / Gas Utilities, Tobacco and various others.

[Capitalist]

This absolute asshat said:

Capitalist dear, I new here, i have read most of the threads here over the last four months, i have been successful in trading shares since i was 14 i am now only 26.(yes i am young and still have much to learn)The share market is a large part of my yearly income now,i still work part time.To my way of thinking property is in-fact a share, it has its volatility. I think you have much to learn from the others here, and macdunk please... i thought you were smarter.

Bwahaha - if you were so smart you wouldn't be asking retarded questions about defensive equities :D:D:D

I await what you can teach me about property investment newbie :([B)][:0]

[duncan macgregor]

ABSOLUTE, You have a lot to learn about investment. Property or shares who cares, nobody makes money if the market stands still. The boom and busts are what smart investors require to make a killing. I love it when people ramp up a share, or property is on an uptrend thats when the smart investor is loaded up to the eye balls. With shares have your stop losses in place, and get out fast its that easy. With property buy at the bottom rent it out, and sell at the top, then wait on the next cycle. Property averages 10pc rise every year so if it stagnates or drops slightly, place some stupid low offers on property, and buy in on the buyers market sell it on the sellers market. Nothing is simpler or easier when the herd stampedes stop and think. macdunk

[dingdong]

quote:Originally posted by absolut-advance

i have been successful in trading shares since i was 14


O Absolut of the Vodkas we are so unworthy of your prowess you are so learned to spend all your paper boy pocket money on buying $500 share parcels tell us more O super-experienced one.

[dingdong]

PS I have successfully traded shares since I was 8, have never had a losing trade and am a billionare.

[duncan macgregor]

Absolute, A company share is never good enough to not have a stop loss other than a gamble that you are prepared to risk. The reason is simple, unless you have inside information, you must rely on being told the truth. With property the first year after an election is inclined to be bad, and the year before inclined to be good. Not always true to form, but one of the considerations to take into account. Money in the housing market is largly borrowed, and money in the sharemarket is largly savings. You cant take it for granted that a slump in housing leads to a rise in the share market, or visa versa. Its reading the sign posts that matters with investments. macdunk

[ari]

quote: and am a billionare.
Is that the same as 'Dung Trader'?

[dingdong]

quote:Originally posted by ari


quote: and am a billionare.
Is that the same as 'Dung Trader'?


I am a billionare many times over, O Sceptical One. I just didn't state in which currency.

[diesel]

You been buying Zimbabwean dollars again Abdab!

http://www.rbz.co.zw/

Interest rates of 180% at the moment. Bargain!

[Steve]

It's official - the housing boom is over!

Cullen rules out any new property tax (http://www.nzherald.co.nz/index.cfm?c_id=3&ObjectID=10340294)
Finance Minister Michael Cullen has ruled out any new form of property tax and says the housing boom is over.