Schrodinger
11-01-2014, 09:25 AM
Great article by Brian on the past history of the NZX and it's reliance upon low capital gains dividend stocks.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11184443
What was of particular interest is the 35% lower mark reached in 2013 than the high in 87. This has had huge consequences for NZ since the 80s due to people throwing their money into the property market and distorting our economic system.
Australia is interesting because they were hit hard by the crash but recovered quickly and through positive initiatives such as the super fund have a more balanced and vibrant economy.
I also note that Singapore in this time is powering along and several years back left us behind in economic performance and prosperity with sound economic policies.
What is also interesting is the comment about the NZX index being ahead of the Dow in the 80s and is now only worth 20% of the 2013 Dow figure.
Completely agree with his assumption we need to use capital indices like other overseas markets. We need good quality capital growth orientated stocks to readdress this silly reliance on rental properties chewing up all of the capital that could be used to return us back to the top of the OECD rankings.
Very interesting to see in numbers our 30 year hangover from the 87 crash.
http://www.nzherald.co.nz/business/news/article.cfm?c_id=3&objectid=11184443
What was of particular interest is the 35% lower mark reached in 2013 than the high in 87. This has had huge consequences for NZ since the 80s due to people throwing their money into the property market and distorting our economic system.
Australia is interesting because they were hit hard by the crash but recovered quickly and through positive initiatives such as the super fund have a more balanced and vibrant economy.
I also note that Singapore in this time is powering along and several years back left us behind in economic performance and prosperity with sound economic policies.
What is also interesting is the comment about the NZX index being ahead of the Dow in the 80s and is now only worth 20% of the 2013 Dow figure.
Completely agree with his assumption we need to use capital indices like other overseas markets. We need good quality capital growth orientated stocks to readdress this silly reliance on rental properties chewing up all of the capital that could be used to return us back to the top of the OECD rankings.
Very interesting to see in numbers our 30 year hangover from the 87 crash.