oh praise da reservres bank

[brother coy]

oh holiest allan man mes just wanna says thankyous man for makings us a overseas investors hahhaha want to stay in da nz longer and enjoys ya nice rates and fors ensurings da market keeps going uppa oh thankyou on behaves of all of us hahahaa:D

Brother Coy no praise for this raise only a measly 1/4 of a % they should have made the cash rate at least 6.75% then they could be praised

[Benlamnz]

With rates going the way they are it makes a fool out of yield oriented portfolios. Even a formerly respectable 8% yield looks crap compare to the 6% risk free, capital protected rates. Will it trigger a new round of dumping of high yield, flat growth stocks?

[warthog]

quote:Originally posted by Benlamnz

With rates going the way they are it makes a fool out of yield oriented portfolios. Even a formerly respectable 8% yield looks crap compare to the 6% risk free, capital protected rates. Will it trigger a new round of dumping of high yield, flat growth stocks?


This is an excellent point Benlamnz, both from an overseas investor perspective as well as local.

Which stocks do you reckon are high yield, flat growth?

For starters, I would look at WRI, WKL, CAV, AIA, POA, HBY, FPA, FPH, TEL, although some of these are likely to benefit from a lower kiwi$ which we'll be looking at (against USD, GBP and probably AUD towards the end of the year).

[trendy]

Don't you know it's the old true and tested NZ boom - bust economic cycle. RB have decades of experience in this area, as soon as they see any type of growth they stomp on it and kill it! [}:)] RB are automatically mandated to keep growth within 0 and 3% :)

It makes me wonder if we (NZ) actually operate in a "free market" why do the RB intervene with interest rates, shouldn't the market find it's own equilibrium [?] To me the banks seem to have a better handle on what interest rates to charge than the RB.

[willy_wonker]

Do NZers spend beyond our means? It seems like everyone in our area drives a Porsche. Is this a sign?

The next global market crash will be trigger by China. The Chinese banking system will be their weakness and eventually result in a meltdown of bad vanishing loans.

[Placebo]

Cantab for the answer you need to read the Reserve Bank act. They have a legislative mandate to control inflation through manipulating interest rates, have to keep it in a 0-3 percent band. It's a blunt instrument, and clearly out of step with the government's stated aim of returning us to the top of the OECD for growth. To have growth you need a little inflation. Of course we don't want to back to the bad old days of 17-20 pct, but something slightly outside the RB's target band wouldn't be all bad.

[Lawso]

High interest rates must surely be good for bank profits. So I bought some more WPT today. Great buying at under 1800 IMO. I also reckon recent weakness has been just a spillover from NAB's problems. Nothing wrong with Westpac on either side of the Tasman.

[Placebo]

They would be in breach of their legislation so wouldn't do it. the target range was raised to 3 pct when Winston was Treasurer just so they wouldn't breach the legislation. You can't really blame Brash for 1997 -- he was acting to meet legislative requirements.

I don't agree but it has been deemed that controlling baseline interest rates is the way NZ will control domestic inflation, and that is that. Monetarism rules, brothers and sisters [xx(]

[clearasmud]

did it cost ya Cantab.
Love those banks except the technicals look bad

[Benlamnz]

quote:Which stocks do you reckon are high yield, flat growth?

I reckon the front runner is definitely RBD, whose yield is the only thing keeping the shares from collapsing. FBU gets a double whammy, as high rates reduces constructions, and make their yield less attractive.

Across the tasman, I reckon Prime Infrastructure will get hit too if the RBA hikes rates next week.

Strange to put these two words together, but under the present environment there is actually a thing call "High-Yield Losers". The question to ask is how long will the high rates last?[8]

[brother coy]

hahahaa nz doolar goings toos da moons agains ya making us overseas ella verys happy hhahha wheres elses can ya get a 10c moves each a way in da space of 6 mths hhaaa ya da man 70c is da next target hahhaa ratee rise comings again hahha luvly ya more bof da boys moving in to take advantage waste da locals haahahaha who stand in da way hahaha

[belgarion]

Brother, 70c may be too low ... but then I'll wait for Kerry (and our good doctor) to show his (their) hand(s) ;)