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Thread: Black Monday

  1. #8741
    ShareTrader Legend bull....'s Avatar
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    Quote Originally Posted by sb9 View Post
    Dow tops 30,000 for the first time...

    The Dow Jones Industrial Average rallied on Tuesday, breaking above 30,000 for the first time amid positive vaccine news, hope for a strong economic recovery in 2021 and easing of political uncertainty as the Trump administration approved the start of the presidential transition.
    as prince once said lets party like its 1999

    i see bitcoin on fire too as people ditch gold for bitcoin even paypal and square have made it easier to purchase bitcoin now fueling the rally.

    on NZ see grant robinson has given the NZD a boost should be over 70c soon

    New Zealand government writes to its central bank about stabilizing rising property prices

    The news sent the New Zealand dollar soaring to $0.6985, its highest since mid-2018, as it reinforced expectations the central bank will resist moving toward negative interest rates next year.

    https://www.cnbc.com/2020/11/24/nz-g...e-prices-.html
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  2. #8742
    ShareTrader Legend bull....'s Avatar
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    New Zealand government writes to its central bank about stabilizing rising property prices


    In effect robinson is making his influence felt on rbnz so i guess now you need to price into your stock valuations ( gentailers etc ) that rate cycle is near an end ( swaps jumped on the news pricing in no more cuts now). as for the dollar a rising dollar trade is the way to go and how that might effect some companies and what other measures might be introduced on the property market. all in all the move may be a tightning of conditions going forward. time will tell
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  3. #8743
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    Stabilising house prices is easy if there is political will :

    1. Increase supply - government embarks on a massive new housing initiative & infrastructure upgrade. Learn from countries like Singapore & China.

    2. Target speculation to curb demand - increase LVRs, CGT or other tax measures and land tax.

    3. Differential lending capital adequacy to assist first home buyers.

    4. Get rid of the RMA ASAP.

    I will be watching the above - will mean increased demand & supply for affordable housing.

    Should shift tens of billions of dollars into share market.

  4. #8744
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    Quote Originally Posted by Balance View Post
    ......

    Should shift tens of billions of dollars into share market.
    Which isn't really 'productive' economy wise is it
    “ At the top of every bubble, everyone is convinced it's not yet a bubble.”

  5. #8745
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    Quote Originally Posted by Balance View Post
    Stabilising house prices is easy if there is political will :

    1. Increase supply - government embarks on a massive new housing initiative & infrastructure upgrade. Learn from countries like Singapore & China.

    2. Target speculation to curb demand - increase LVRs, CGT or other tax measures and land tax.

    3. Differential lending capital adequacy to assist first home buyers.

    4. Get rid of the RMA ASAP.

    I will be watching the above - will mean increased demand & supply for affordable housing.

    Should shift tens of billions of dollars into share market.
    1 - they tried that and found, as predicted, that getting them built was a bit of an issue - shortage of skilled labour.
    2 - property investment isn't the same as speculation. LVRs slow some down as it removes some player but leaves well capitalised players to scoop up more.
    Re CGT - I'd keep buying since leverage advantage would still trump CGT disadvantage, I'd just need more properties to make up for it.
    3 - might help but shared equity would probably help more
    4 - allow people to build whatever they want next door to you

    Supply is the key and that will take a long time.
    Paying for the increased infrastructure is a problem - councils are strapped at the moment and making purchasers pay up front makes sections far to expensive. They need to sort out the infrastructure financing model. Someone (or some entity) needs to borrow specifically for a subdivision and get the owners to pay down the debt over the life of the asset - lower up front cost hence lower house prices.

  6. #8746
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    Quote Originally Posted by winner69 View Post
    Which isn't really 'productive' economy wise is it
    It is if you filter it though TWR back into salaries and expenditure...

    I have a read a fair bit of what's come out in the media since GR mailed the RBNZ and all I see is they want stability. Given what I have heard from people I know and what I have seen locally in the last 3 weeks, even last week, stability from here will still show further gains. They don't want to crash the housing market while Covid still rages overseas. It would be counter to what they wanted to achieve in the first place.

    Banks love housing. I used to find business borrowing far more difficult and expensive. Maybe a simple reversal of costs relative to each would go a long way. We have had 15? years talking about supply/demand to no avail yet the threat of rising rates always seems to have had an effect.
    Last edited by mike2020; 25-11-2020 at 04:26 PM.

  7. #8747
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    labour looking into raising taxes?

    Government muddying waters around its no new taxes policy, National Party says

    http://Government muddying waters ar...nal Party says

    we didn't say we wouldn't tinker with the details of existing taxes," he told the AM Show.
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  8. #8748
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    Quote Originally Posted by bull.... View Post
    "we didn't say we wouldn't tinker with the details of existing taxes," he told the AM Show.
    An unfortunate reality that governments play with semantics. Sounds like another case of same but different: https://www.youtube.com/watch?v=E3-RYMwJiWA

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  10. #8750
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    Quote Originally Posted by bull.... View Post
    Closer to home, ASX200 following suit also, up ~11.5% for November... best month for over 30 years.

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