Agree bull....overvalued is what nz shares. I hVe none except a wee parcel of STU.
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Agree bull....overvalued is what nz shares. I hVe none except a wee parcel of STU.
Some commentators are saying the forward PE on the NZX50 is now only 17.5. Massively overvalued, probably not but some stocks on PE's north of 25 with limited growth prospects probably are.
Anyway...yet another day of turbulence ahead. If this was an airplane ride I think everyone would have their seat belts firmly fastened and many of the sick bags would have already been used. ALL of the gains for 2018 for the NZX50 (which remember is a gross index so includes dividends) have been wiped out in October as they have for the DOW and many other indices.
Market now down more than 9% this month :eek2:
Real estate is starting to fall in many countries and the most vulnerable are those countries where the price on a per capita basis is the most expensive and apart from Hong Kong that's New Zealand and in particular Auckland.
SUM has a focus on selling down two large facilities in Auckland and are probably more vulnerable right at the minute than any of the other sector players although I also note RYM have a number of Auckland developments on the go, (but are smart enough to discount the heck out of the weekly fee to get most units sold off the plans). If real estate in Auckland starts to tank like it is in Melbourne we are in for interesting times ahead.