why would people invest in the NewZealand market

[brettdale]

When the labour party and the greens still exist?

[troyvdh]

not a bad question...I for one have never heard of you.
I suppose a reply could consist of A low interest rates
B low interest rates

[Vaygor1]

For me, I hate Forex risk.
Governments & policies can (and do) change in any country one can invest in, with less chances of hearing the news in time to do something about it.
You can remove the 1st risk and mitigate the 2nd by investing in NZX listed companies.

I think there may be even more opportunities than Sparks points out too.... as the Labour & Greens would try to make changes that they think will improve things (with all the best intentions) and in the process completely cock it all up so the likes of us can capitalise on both the transition through the changes, and on the changes themselves whatever they may be.

[Whipmoney]

I believe in laissez-faire, low taxes, personal responsibility and an internationally focused New Zealand. But a Labour led govt that I'd vote against would still present investment opportunities.

Laissez-faire is a nice theory (in Ayn Rand novels particularly) however in reality it just leads to crony capitalism (i.e America) which isn't the wonderful and free market that every liberalist preaches about.

In answering the OP I would suggest that NZ has some great companies. Sure we don't have the likes of Apple, but who would want to hold that stock now anyway..

[percy]

When the labour party and the greens still exist?

I have no trouble with any governments.As an investor I look to see whether government policy will affect what I invest in.I have never invested in TEL as I have always felt governments will "pee in the water".I am staying out of MRP for the same reasons.
I enjoy investing in NZ companies as I can keep and eye on them easily,go to their premisses,speak to their staff,and contact management.
Labour party and greens need jobs,and when I was in retail times were better under Labour.I now sell books to school libraries,and again there was more money avaliable for school libraries when Labour was in power.
I am not sure whether I am far right left winger, or a far left right winger.!!

[Stu]

Laissez-faire is a nice theory (in Ayn Rand novels particularly) however in reality it just leads to crony capitalism (i.e America) which isn't the wonderful and free market that every liberalist preaches about.


firstly, take a closer look in crony capitalism under leftist like obama, or mussolini.
secondly, liberalist?

[Stu]

typos fixed:
firstly, take a closer look at crony capitalism under leftists like obama, or mussolini.
secondly, liberalist?

i expect under labour there would be opportunities, i doubt it would be especially fair or predictable though.

[BIRMANBOY]

Percy as long as you aren't winging it with Eddie the Eagle...
In the 1988 Olympics, Edwards competed in, and finished last in, both the 70 m and 90 m events. From the beginning, though, his legend was embroidered with falsehoods.

They said I was afraid of heights. But I was doing 60 jumps a day then, which is hardly something someone who was afraid of heights would do.
... But was he afraid of jumping?
Of course I was. There was always a chance that my next jump would be my last. A big chance.




I have no trouble with any governments.As an investor I look to see whether government policy will affect what I invest in.I have never invested in TEL as I have always felt governments will "pee in the water".I am staying out of MRP for the same reasons.
I enjoy investing in NZ companies as I can keep and eye on them easily,go to their premisses,speak to their staff,and contact management.
Labour party and greens need jobs,and when I was in retail times were better under Labour.I now sell books to school libraries,and again there was more money avaliable for school libraries when Labour was in power.
I am not sure whether I am far right left winger, or a far left right winger.!!

[percy]

[QUOTE=BIRMANBOY;402246]Percy as long as you aren't winging it with Eddie the Eagle...
In the 1988 Olympics, Edwards competed in, and finished last in, both the 70 m and 90 m events. From the beginning, though, his legend was embroidered with falsehoods.
[INDENT]They said I was afraid of heights. But I was doing 60 jumps a day then, which is hardly something someone who was afraid of heights would do.
... But was he afraid of jumping?
Of course I was. There was always a chance that my next jump would be my last. A big chance.


A fasinating character who has lived an amazing life.

[futurist]

Maybe it would be more interesting to split the question into two:

1) Why would NZers invest in the NZ market
2) Why would foreigners invest in the NZ market

If most of us here are NZers living in NZ then I guess we need to make our implicit assumption explicit: by default we are earners and holders of NZD, and at least we believe we have some domain knowledge about our economy and our country. Of course many of us also put money in foreign markets but it is difficult to ignore this "local" factor which to me is a major factor.

[GTM 3442]

Maybe it would be more interesting to split the question into two:

1) Why would NZers invest in the NZ market
2) Why would foreigners invest in the NZ market



Dividends.

Pick a UK bank account with 0.5%pa interest, compare to (say) TEL at 7%. +
Pick an NZ bank account with 4.0%pa interest, compare to (say) CNU at 9%+

Dividends. Lovely lovely dividends.

[BIRMANBOY]

See... there is intelligent life out there:)
Dividends.

Pick a UK bank account with 0.5%pa interest, compare to (say) TEL at 7%. +
Pick an NZ bank account with 4.0%pa interest, compare to (say) CNU at 9%+

Dividends. Lovely lovely dividends.

[futurist]

Dividends.

Pick a UK bank account with 0.5%pa interest, compare to (say) TEL at 7%. +
Pick an NZ bank account with 4.0%pa interest, compare to (say) CNU at 9%+

Dividends. Lovely lovely dividends.

Sure, but is that particularly attractive in NZ comparing to other share markets in the world? How come our market is still so small relatively, meaning why aren't more people (both local and foreigner) putting their money to TEL or CNU?

[futurist]

Of course, both real risk and perception of risk. However, what does that mean? Are we saying TEL or CNU are risky investments in the eyes of 1) local and 2) foreigner?

I actually think the real risk we all face in NZ is the lack of perceived risk differentiation. For instance, the little choice we have in our share market in terms of size and number of companies limit the range of perceived risk/return people could project on. That constraints the opportunities for this nation to use share market effectively.

[BIRMANBOY]

If you did some research yourself?... you would find yes they are very attractive. Small countries have small markets. Why not more interest?? NZX asleep at wheel?? Lack of visibility internationally is a function of perception. Change the perception and change the visibility and you would see big changes. Until that happens NZX is a dividend goldmine..PSSt (dont tell anyone though). Lets keep it for ourselves.
Sure, but is that particularly attractive in NZ comparing to other share markets in the world? How come our market is still so small relatively, meaning why aren't more people (both local and foreigner) putting their money to TEL or CNU?

[BIRMANBOY]

Risk is there yes but I dont believe is the predominant cause of "lack of interest'. See my post #18 but I'll paste it here again.
""""you would find yes they are very attractive. Small countries have small markets. Why not more interest?? NZX asleep at wheel?? Lack of visibility internationally is a function of perception. Change the perception and change the visibility and you would see big changes. Until that happens NZX is a dividend goldmine..PSSt (dont tell anyone though). Lets keep it for ourselves.""""""
Risk is a personal thing ....an American or British or foreign investor will see us as being..far away, very small, only good at sheep, and its ALL TOO HARD. These investors are an untapped resource. Especially when you consider the low dividend rates available on most overseas exchanges. Make it (our stocks) visible, make it easy to access and there is a bonanza of potential interest there. As I said ...really comes down to the NZX themselves.


All comes down to RISK