Creating options=opportunity
At this juncture, their publicly traded investment vehicle, Berkshire Hathaway US:BRK US:BRK seems to offer investors three ways to win.
https://www.marketwatch.com/story/qu...of2&yptr=yahoo
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Creating options=opportunity
At this juncture, their publicly traded investment vehicle, Berkshire Hathaway US:BRK US:BRK seems to offer investors three ways to win.
https://www.marketwatch.com/story/qu...of2&yptr=yahoo
Often when you don't know what you should do then do nothing but sit on your hands but read,listen & be ready to buy.
In hindsight, you may have missed some good opportunities but don't kick yourself,we all do that but there will a better one around the corner
https://www.marketscreener.com/busin...8/?countview=0
"Mr. Munger, vice chairman of Berkshire Hathaway Inc. and Warren Buffett's longtime business partner, likes to say that one of the keys to great investing results is "sitting on your ass." That means doing nothing the vast majority of the time, but buying with " aggression" when bargains abound."
"Some of the lessons from the current situation were that businesses should not be over-leveraged, and shouldn't rely on just one debt provider, Orr said."
Good advice !
How many businesses stick to one banker?
"Given the Government had made it clear it did not want to be a long-term owner of existing privately-owned commercial enterprises, that implied "bringing in skills" and more partnerships, he said."
As long as its not the banskters!
https://www.stuff.co.nz/business/121...+22+April+2020
Are you allowing algorithms to beat up your portfolio?
https://finance.yahoo.com/news/a-vie...160248892.html
A view from the trading floor: Algorithms having 'outsized impact' amid coronavirus panic
"Computer-driven trading algorithms — often faulted for volatile markets even during the best of times — certainly aren't helping now, Aronowitz explained.The algorithms feed off of each other, creating an environment with less liquidity.
"When market volatility increases, liquidity decreases as market makers reduce the inventory they are allowed to carry within their portfolio," the investor explained."
"Often times, prices need to go far beyond "value" before institutional money is willing to step into this type of market. "This ultimately leads to a cycle of calm and market normalcy,"
For you Hoop
"So now, we are going to have even more zombie companies standing in the way of progress, and Potemkin markets whose prices are meaningless.
That scheme will reward some people. But probably not you.?
https://www.interest.co.nz/opinion/1...tion-financial
Another person who wrote that article, who thinks they're smart. No one audits these goons because what they say today, will never be verified later on in a year or 10 years time. Like Robert Kyosaki has been saying for the past 7+ years that there will be a mega stock market crash... sooner or later as each year goes buy he will guess it right.
What ever happened to the zombies that formed from the 2008 crisis?
Equities are rebounding because the world gov'ts can't let it fail. You're not going to beat them by going against them so might as well joint them. Oh.. cash in the bank? bonds? = nope. What is left then? No wonder the smart money keeps fueling the stock markets.
Oouch I bet they though their money was safe too!
"Franklin Templeton will wind up $4.1 billion of Indian debt funds after a liquidity crisis compelled the firm to freeze investor withdrawals."
"At least 76 European mutual funds with $40 billion in assets suspended redemptions last month, according to Fitch Ratings.
https://finance.yahoo.com/news/frank...035101159.html
Templteton promoted in NZ by a certain broker
I am pleased I got out years ago yudk
This is not an issue of 'too big to fail'. These companies were completely viable before the virus escaped China. All the gov'ts around the world had no choice but to ramp up the printing press while forcing everyone in quarantine.
Really sad is those financial advisors and analysts that get paid for 'merely breathing air'. The NZ gov't implemented an investment scheme that does not account for such crisis so no one else but the NZ gov't should be held accountable for the stock market crash. On the radio today they talked about 1st time home owners can get funds from their Kiwi Saver fund. Not a word was mentioned how bad it is to sell shares in a crash and the when the person walks in the office to their financial advisor that talks about their Kiwi Saver fund, they're not going to disagree about using the funds for a deposit on a home. Is this to say, the investments in a residential home is BETTER than investments in managed funds? Get real here! No wonder the rich get rich.
My father living in Canada had invested in John Templeton's Mutual Funds from the late 80s to shortly after 2000. His returns? Nothing to rave about and despite their fancy charts in their prospectus, they did not show how much the fund was paying in commissions to the financial advisors that sold their clients to buy their managed funds. Hindsight my father should of bought Berkshire Hathaway. I think it's fair to say in N. America where you have over 3,000 different managed funds you can choose to invest in, the vast majority of them DO NOT WORK for the average investor (meaning your working class folk that makes routine contributions every week or month). Yet, over many decades these funds continue to exist and Warren Buffet has demonstrated how Wall Street and gov't regulatories have been effective at promoting it.. selling it ; no different to how auto makers promote their vehicles.Quote:
Templteton promoted in NZ by a certain broker I am pleased I got out years ago yudk
If you sense my tone, a person living in NZ wanting to invest should look at residential properties. If the hassles of dealing with rental payments, upkeep, etc deter the person, then they would be paying huge price by choosing the managed fund route or taking their $ to Craigs, MacQuires, Jarden, etc.
True enough. In the New Zealand environment, successive governments have ensured that property is the most rational choice.
SBQ
Bold statement that they where completely viable before the virus escaped ......
Which companies from the 80's have gone now,all for different reasons?
The point the article makes is
" Financial markets don’t work when people feel no consequences for bad decisions"
From a NZ perspective, this is not to say there are no OTHER investment choices. It seems successive NZ governments have pulled the wool over the public eyes. Bill English brought in Kiwi Saver without even addressing the tax benefit of investing in residential houses. At this was during a time where we had no 'ring fencing' or 'Brightline Test' on real estate assets.
I would encourage those to check out what Canada has done to make houses affordable or address getting 1st Time Home Owners into a home. Today's radio talk on this subject made no mention what Canada has done and instead, just talked about changing the LDR deposit ratio on a mortgage. They talked about loosening up the Foreign Buyer's ban but the caller didn't seem to understand the reason why we had it in place. In Canada the Federal gov't will loan up to 10% on the value of a NEW home for 1st Home Owners. This loan effectively means the person isn't stuck with trying to save 20% for a mortgage when the housing prices over years keep going up (in effect, never getting into a house at all). It boosts the person immediately by meeting their deposit on the mortgage. Re-payment is due WHEN the hold is sold or in 25 years (and is not tagged on as part of the mortgage repayment); the savings to the home owner in terms of compound interest saved is immense and I applaud the Cdn gov't for promoting this scheme. For existing 2nd hand older homes the gov't only puts up 5%. Anyways, a little off topic.
You do realise that it was the gov'ts that caused all this mess? They've destroyed the most critical, productive, part of the economy ; the Working Class. The rich don't need to work, the poor don't work, so what effectively happened? For the majority, all in the effort to save the deaths of the elderly and sick. But no gov't around the world wants to look like a fool, well there were exceptions like S. Korea and Sweden that didn't do a full scale lockdown.
I'll reiterate again, don't blame the financial markets for the collapse of the global economy. We're not talking about an Enron (financial accounting fraud), or the GFC in 2008 where banks misbehaved so how is this an issue of 'accountability' ? No one was misbehaving until this virus broke out and the article is completely missing the point that consequences don't apply if it COULD of been avoided. I have friends in America that are quite pissed off at China for not containing it ; China just played ignorant until it was too late. Now everyone is looking at their gov't to see what they're going to do next. How much $ are they going to dish out and how many of those are going to fight over that money like hungry animals. So in response, the gov't is taking the position that the financial markets must not fail at all costs, even racking up debt exponentially. and gold? lol we're a lot closer to fighting over food than to worry about buying gold.
"The NZ equity market and the potentially the NZ dollar FX market are not pricing-in a prolonged economic recession. However, here in New Zealand there appears to be a weird competition amongst the various economists as to who can have the most doom and gloom in their forecasts for unemployment and GDP growth."
"It is near time for the medico’s, politicians and bureaucrats to step aside and allow our innovative and smart business entrpreneurs shape the new economy with private capital from whereever we can get it"
https://www.interest.co.nz/currencie...ugh-government
Let me pick some quotes from the article: "However, China is back to work and very soon Australia and New Zealand will largely be back to work. For this reasons it is difficult to be negative on the NZ dollar outlook, as in relative terms we are just so far ahead in the recovery stakes than Europe and the US."
The numbers i've seen for China do not imply they are back to work and the public there has lost confidence in Xi Ping Pong. Their central gov't basically is forcing the people back to work while trying to impose some level of normality. I'm surprised that Mr Kerr is not looking from the US perspective, specifically that the US is the BIGGEST economy in the world. What does being the largest economy in the world mean? It means they have the biggest wallet and buying power, in terms of disposable income per individual, no other nation is greater. Paraphrasing, "The nation that holds the wallet demands where the products are to be made". Think about it. How does that affect NZ? Well for the past 30 or so years NZ has benefited from Made in China products because the many brands we see at the retail shops are American brands (or Chinese knock offs stolen from western technology). If the US goes on a trend to move production away from China, perhaps say nearby Vietnam or closer to the US say Mexico, then NZ is not going to get the benefit. Certainly not the benefit that we have a Free Trade Agreement between NZ & China. Earlier in the year GM announced to exit the NZ & Australian markets by winding up Holden. Many big American names could do the same as these corporations scale down and focus on their core markets. On the other hand, if China is on a path of decline, so will their demand for NZ products such as our dairy. Remember, NZ on a whole is only a 2 trick economy. 1) being our agriculture exports and 2) our tourism.
"In my view, it is always preferable to take more note of what the financia/investment markets are telling us about likely future economic conditions than what economists and politicians are telling us."
He has a point, but he's not saying much. The fact is NO ONE knows the state of global financial markets at any given time. But the obvious is that they are lower than their Feb peak and by that metric, if you're investing for the long run (10+ years), you're never going to lose by investing now. However he does speak a bit about the NZ exchange rate but makes no mention of NZ's monetary balance sheet, and in relation to NZ's massive drop in GDP. Investors don't want to hear what happened - as his graphs show and no one cares if so and so could of done this or that - that's just 20/20 hindsight waffle.
"New Zealand has a unique opportunity to sell itself as a safe-haven sanctuary for global businesses – a “Switzerland of the South Pacific”.
Not gonna happen. Just look at the nations with favourable tax haven status? They're usually developing economies or a nation known for shady practices. Switzerland historically use to be a tax free haven but the recent introduction of CRS (Common Reporting Standard - by the OECD group) has essentially stripped their bank secrecy laws. Even tax free havens in the Carribean islands have lost that status due to CRS. Also NZ's image has always been on the liberal socialist side and paying taxes so happens to be part of that model. PM Ardern would know (coming from the socialist Labour camp) and if you want NZ investment, then you need to start thinking more American like. For example, "The deaths of Americans lives over COVID19 do not amount to the cost of the economic loss in society". For the past 2 centuries the US came out #1 because of their model of attracting wealth and skilled migrants. Very hard for any other nation to achieve that status today.
I'm no expert, but I do find the NZ local view only paints a partial picture when it comes to investing. Follow where the rich go in terms of investing? They're investing in the US equity markets.
Another very good reminder about The Bear Market personality...
>> https://www.zerohedge.com/markets/le...g-bear-markets <<