Well I have with the help of an usx.co.nz {Unlisted} stock....lol.
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Well I have with the help of an usx.co.nz {Unlisted} stock....lol.
I wonder which one that is lol
If someone had told me at the start of the year that the total return my dull boring dividend yield investment portfolio would be up by 20% for the year I would have been rapt. So I am extremely happy with my result (touchwood given the year has not finished) , even though I am some ten percentage points down on the 'NZX50 index' return. I know that the strategy that I follow will underperform the market in high growth years but will outperform the market in poor years (even if 'outperformance' means I lose less money that the index).
I personally think it is amazing that despite my 'sins', my Sky City has returned a positive for the year in spite of the disastrous fire. Utility type shares like Contact Energy and Spark were never going to be king hit performers. But they were unlikely to crash by 20% either. This is the bit that most shareholders don't get when they are entering a competition like that run by our mate Sylvester, and then pat themselves on the back for outperforming the index 'on paper'. If there is no risk of losing real capital then you can pick all kinds of high risk shares and then pat yourself on the back when those high risk choices come off. Over the long term, such gains are unlikely to be repeated. In fact if you did following such a strategy in real life, because year on year returns are cumulative and not independent, you will almost certainly end up near bankrupt.
To me the risk (which is never reflected in index returns because historical risk is always zero - the event you are measuring has already happened) is just important as the return. So in this strong bull market I am happy to remain a perennial underperformer.
SNOOPY
Quite a few of us on here reaping the rewards of booming share markets are of the older generation ....even if I use the phrases like ‘silent generation’ (really old) and ‘baby boomers’
We have been fortunate to have been born when we were to reap these benefits
Even though we have have worked hard the phrase ‘accidental millionaires’ isn’t out of place in this discussion.
I suppose we have to be to be kind hearted to those who go around saying ‘OK boomer’ ,...the younger generations aren’t going to have it so easy investing wise as us oldies.
Merry Christmas and a Happy New Year to everybody, young and old
An important issue for the future generations is in your post when you say “many of them will be the ultimate beneficiaries”.
I would say that many will indeed need to inherit a share of the (inflated) estates of their elders, just so that will be able to afford to get into home ownership, purchase shareholdings with inflated valuations, and to able to have the same standard of living as their elders. However of course wealth is not evenly distributed and of course it will be the rich minority getting richer. Many may actually inherit insufficient assets to enable them to maintain the standard of living of their parents.
Go to YouTube.."Roger Penske at 2008 Winter Commencement."
Attachment 10910
See NZ50G in blue (highest) against other non gross indexes the SP500 in green, then the NZ capital index and the ASX200. As can be seen 50% of gains alone in the NZX50 we all look at is from div reinvestment compounding over 10 years. Brain Gaynors article really worth a read.
while the nzx is making new highs heres a good article on how having bonds in your portfolio as well has made you big gains , even beigger than stocks on this example. ( of course they would have lost heaps if rates had gone up)
https://www.interest.co.nz/bonds/103...fall-they-have
NZ equity returns for the next decade?
https://www.goodreturns.co.nz/articl...xt-decade.html
I think this is the most important thing to take from the article
each additional year of above normal returns makes any return to a more “normalised” PE more painful.
A worry for residential land prices too? I think residential land/property comprises a larger proportion of household wealth now compared with 2008 and 1987.
How each inflated asset market adjusts will probably be different. House prices tend to stagnate whilst the sharemarket tends to be a rollercoaster. However who knows what it will be like next time?
it will happen , who knows when is the million dollar question?
Auckland motorways, Harbour Bridge Skypath big winners in Government's $12 billion infrastructure spend-up
https://www.nzherald.co.nz/nz/news/a...ectid=12304150
doing more 4 lane highways is good news helps improve nz productivity
It should not come at the cost and disadvantage of property owners along the routes though. Some have to suffer from having a Notice of requirement on their title for years - or decades - before the finalisation of the route and funding! With compensation being unavailable or at the expense and inconvenience of going to Court. NZ compensation provisions need a thorough update and over-haul.
China bans hit $3.5b of tourism, education exports
https://www.newsroom.co.nz/2020/02/0...cation-exports
NZ tourism braces for coronavirus hit, 9000 cancellations already
https://www.nzherald.co.nz/business/...ectid=12305050
Outbreak will hit exports, says port boss
https://www.nzherald.co.nz/business/...ectid=12305365
all the stories are coming out at least there realistic , only a very naive person would believe it wont have an impact on NZ. i n fact the people who compare it to sars i would say are naive why because china is so much more important to NZ now for exports than when sars was around so the .08% they parade round is crap it will be a much bigger impact on NZ GDP. did people notice the retailer stocks getting sold off last week thats an indication investors are expecting slowdown in retail to come from all this at some stage. I imagine the RBNZ will cut rates again mid yr once the slow down hits and people start losing jobs ( hopefully not to many but unfortunately tyhere will be some). govt infrastructure package wont help as they are long term projects. they may need to do more if it gets really bad.
OMG..no more Chinese money!! We will be in trouble...now it will make kiwis appreciate more Chinese tourists instead of racist them....