Black Monday

[ValueNZ]

With a different timeframe I think very differently. After seeing nothing I wanted to buy for a whole year, now I see bargains everywhere. I see similar opportunities today that were available over those crazy Covid low days. Today's market is an absolute dream for value investors like me. I couldn't imagine market conditions that would suit me better, with a war chest of cash I have been waiting to unleash on just such a market opportunity such as this.

SNOOPY

Snoopy, what percentage of your investments are traded on the NZX?

Mostly everything that I'm looking at is far more expensive than a year ago...

[Snoopy]

Are you willing to part with any examples?

SPK (the highest yielding large cap, the yield bump caused by temporary drop in large enterprise projects which has lowered the share price) , HGH (now funded and poised to refine the Australian business arm) , SCT (on the lowest historic PER for 14 years, yet divie was just boosted) , and PGW (bought low, waiting for the rural recovery).

Although there is a caveat on PGW, which potential investors need to be aware of:
https://www.sharetrader.co.nz/showth...=1#post1054092

I have topped up on all of those this year, so far.....

SNOOPY

[causecelebre]

What is the opportunity cost of investing in NZX? While other global markets are making ATH the NZX is in the doldrums. How much did it cost you not being invested in say, the S&P500 from the end of '23?

[Toddy]

Anyone with capital snapping up discounted NZX stocks should do very well in the medium term.

It's just about timing. Go too early then yes, there is an opportunity cost. Get your timing right and you could see eye watering returns.

Lower interest rates, recovery of the rural sector and increased GDP per capita through technology efficiencies and dare I say it, working harder for longer.

Only a fool would give up on NZ. And for those that think the grass is always greener living overseas, then go for it.

[Snoopy]

What is the opportunity cost of investing in NZX? While other global markets are making ATH the NZX is in the doldrums. How much did it cost you not being invested in say, the S&P500 from the end of '23?

Oh I would have been heaps better off if I had put that money in an S&P500 at the start of the year, no doubt about it. But the thing that puts me off the US markets is their dependence on the so called 'magnificent seven'. And some of the valuations in that company set are so sky high, that as the investment fashions change you could find your portfolio going backwards in value very quickly. That is not a risk to the hindsight investor of course. But it is a real risk nevertheless. The other issue if I did that would be that my investment would be cashflow negative as I would fall under the FIF income tax regime.

If you think in terms of where your NZX investments sell their products or services, you can get good exposure to overseas markets, even if the majority, or even all, of your investments are based here on the NZX.

SNOOPY

[workingdad]

Perhaps part of the issue with the performance of nz share market .

KIWISAVER TURNS SHARPLY INTERNATIONAL
The RBNZ's monitoring (T43) of the funds sector shows that total KiwiSaver assets rose to $115.234 bln bln as at March, a new record high. However there was a huge fall in assets invested in New Zealand, now under 41%. Recall it was just over 50% in December 2020, and was 60% in 2008. If it had held at 50%, that would have involved more than $10 bln more invested locally. 62% of all assets are in equities or unit trusts (19% in NZ, 43% overseas).

[SailorRob]

Oh I would have been heaps better off if I had put that money in an S&P500 at the start of the year, no doubt about it. But the thing that puts me off the US markets is their dependence on the so called 'magnificent seven'. And some of the valuations in that company set are so sky high, that as the investment fashions change you could find your portfolio going backwards in value very quickly. That is not a risk to the hindsight investor of course. But it is a real risk nevertheless. The other issue if I did that would be that my investment would be cashflow negative as I would fall under the FIF income tax regime.

If you think in terms of where your NZX investments sell their products or services, you can get good exposure to overseas markets, even if the majority, or even all, of your investments are based here on the NZX.

SNOOPY

At the start of the 2010's you mean.

[SailorRob]

Oh I would have been heaps better off if I had put that money in an S&P500 at the start of the year, no doubt about it. But the thing that puts me off the US markets is their dependence on the so called 'magnificent seven'. And some of the valuations in that company set are so sky high, that as the investment fashions change you could find your portfolio going backwards in value very quickly. That is not a risk to the hindsight investor of course. But it is a real risk nevertheless. The other issue if I did that would be that my investment would be cashflow negative as I would fall under the FIF income tax regime.

If you think in terms of where your NZX investments sell their products or services, you can get good exposure to overseas markets, even if the majority, or even all, of your investments are based here on the NZX.

SNOOPY

Just buy the equal weight SP500 fund. Problem solved.

You don't get good exposure to overseas markets by NZX investments selling product there when we are at the arse end of the world and cant produce anything desirable efficiently.

Or just buy Berkshire which will destroy any return you can get from the NZX and do it with less risk.

[SailorRob]

With a different timeframe I think very differently. After seeing nothing I wanted to buy for a whole year, now I see bargains everywhere. I see similar opportunities today that were available over those crazy Covid low days. Today's market is an absolute dream for value investors like me. I couldn't imagine market conditions that would suit me better, with a war chest of cash I have been waiting to unleash on just such a market opportunity such as this.

SNOOPY

Clearly you are not talking about the NZX. Virtually nothing remotely interesting compared to what is on offer offshore.

[Valuegrowth]

Perhaps part of the issue with the performance of nz share market .

KIWISAVER TURNS SHARPLY INTERNATIONAL
The RBNZ's monitoring (T43) of the funds sector shows that total KiwiSaver assets rose to $115.234 bln bln as at March, a new record high. However there was a huge fall in assets invested in New Zealand, now under 41%. Recall it was just over 50% in December 2020, and was 60% in 2008. If it had held at 50%, that would have involved more than $10 bln more invested locally. 62% of all assets are in equities or unit trusts (19% in NZ, 43% overseas).

I prefer to keep Kiwisaver funds locally in 100% cash fund for the moment. I don't follow the crowd.