NZ residential property is even worse - land pumped up to huge multiples of incomes.
Yes with massive amounts of debt to equity(that could well erode) very few kiwis will have debt invested in the equity markets
"With a good perspective on history, we can have a better understanding of the past and present, and thus a clear vision of the future." — Carlos Slim Helu
Yes with massive amounts of debt to equity(that could well erode) very few kiwis will have debt invested in the equity markets
True.There may be some FOMO investors who mortgaged their houses (or added to their mortgages) to invest in the increasing stock market, but not many would be able to borrow using their share investments as collateral.
Recent house purchasers can get stuck with negative equity if/when there is a serious retreat in prices. It has happened in other countries. In NZ that would be even more serious than in many other countries as such a great proportion of NZ household wealth is in residential property. The knock on effect to the NZ economy in general would be magnified too.
NZ has so many of its eggs in investment in the residential housing basket.
looks like end of month pension buying was the only reason for the late surge in US indices on friday. even after market futures were showing a near 300 pt rise for monday open but looks like all that has changed following the first confirmed death of an american from corona virus. now showing over a 300 pt decline monday at open this stage. this fits in with the technicals which are showing a consolidation at the lows hrly trading friday. apparantly trump is even considering border closure with mexico and is ratching up pressure on the fed to save the day of course which would only be a temporary reprieve in the scheme of the over inflated markets anyway. I think if the fed does nothing ( cause a fed rate cut not really going to do much at this stage you can tell that by the reaction of the market to powell comments on friday market went down after them) it actually gives them the chance to reset the narrative of everyone thinking the fed there to save the day for the market that is. then they can go back to do what they supposed to do demand side support.
Nasdaq way overvalued still sp500 and dow back in the giant trading ranges from before fed induced repo rally so maybe they find support back at the bottom of those ranges. asx still overvalued considering economics nz severley overvalued not reflecting any of the economics to come.
ASB must be busy again. I had this problem too last Monday when was selling up. It can be very frustrating, when all you want to do is get out quick
Service Disruption – Trade Confirmations
We are currently experiencing technical difficulties with our customers receiving trade confirmations. There may also be delays in your orders reaching the market. Please call us on 0800 272 732 option 2 if you require any assistance with placing an order. We apologise for any inconvenience this may cause.
ASB must be busy again. I had this problem too last Monday when was selling up. It can be very frustrating, when all you want to do is get out quick
Service Disruption – Trade Confirmations
We are currently experiencing technical difficulties with our customers receiving trade confirmations. There may also be delays in your orders reaching the market. Please call us on 0800 272 732 option 2 if you require any assistance with placing an order. We apologise for any inconvenience this may cause.
Lol you try dealing with thousands of Lemmings all at once.
Originally Posted by Balance
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