Black Monday

[Daytr]

What I am looking at is with Australian interest rates being considerably lower than NZ will the ASX outperform the NZX? Although I cut to cash in NZ I left my Aussie funds on aggressive. Let's see in 12 months.

[Bjauck]

Yeah it's a total con job as a lot of things in finance are.

If comparing to overseas indexes like the S&P500 you need to use the NZ capital index.

The one that recovered from 1987 in 2018...

The NZ high dividend payment rate, as opposed to withholding profits to reinvest, boosts the publicised NZX50G so NZ share investing does not appear to lag overseas markets.

It is why NZ incredibly applies an unrealised capital gains tax on overseas shares via the FIF regime. A punishment for daring to withhold dividends in order to invest in applying capital to increase productivity. A Very unKiwi thing to do.

[SailorRob]

The NZ high dividend payment rate, as opposed to withholding profits to reinvest, boosts the publicised NZX50G so NZ share investing does not appear to lag overseas markets.

It is why NZ incredibly applies an unrealised capital gains tax on overseas shares via the FIF regime. A punishment for daring to withhold dividends in order to invest in applying capital to increase productivity. A Very unKiwi thing to do.

Don't go mentioning capital gains taxes, old balanced will throw a fit!

Yep, but ultimately if a NZ company pays a 5% dividend then the tax you pay will be identical to if you had the same amount invested in FIF regime companies.

With FIF regime if you have a company paying a 10% dividend then you could argue that 5% of that is tax free.

[Bjauck]

Don't go mentioning capital gains taxes, old balanced will throw a fit!

Yep, but ultimately if a NZ company pays a 5% dividend then the tax you pay will be identical to if you had the same amount invested in FIF regime companies.

With FIF regime if you have a company paying a 10% dividend then you could argue that 5% of that is tax free.

Perhaps the deemed rate of return for tax purposes should be applied for all investments including investor real estate, payable on sale of the asset if there is no actual net income earned during possession.

[Daytr]

Where would stock indices be without this outflow from banks? Not sure it was about better returns in a rising interest rate environment driving the flow but the risk associated with banks.
https://www.nzherald.co.nz/business/...61358fbe6ffe3b

[bull....]

What I am looking at is with Australian interest rates being considerably lower than NZ will the ASX outperform the NZX? Although I cut to cash in NZ I left my Aussie funds on aggressive. Let's see in 12 months.

asx has done better than nzx last wee bit esp in certain sectors ie resources. weather that will continue who knows

[SailorRob]

Where would stock indices be without this outflow from banks? Not sure it was about better returns in a rising interest rate environment driving the flow but the risk associated with banks.
https://www.nzherald.co.nz/business/...61358fbe6ffe3b

Interesting how some people still don't understand even after it's been painstakingly explained.

[bull....]

best markets this yr

crypto by a country mile
nasdaq esp semiconductors
gold
europe

still maintain nz negative yr again as it mean reverts

[Muse]

Headline inflation drops to 6.7%, a tad below local economist (Westpac, BNZ, ASB, ANZ, Kiwi) consensus of 7.1%. That's good.

Sadly non tradable inflation came in at 6.8%, inline with consensus of 6.8%. This is where the battle needs to be won.

[winner69]

Headline inflation drops to 6.7%, a tad below local economist (Westpac, BNZ, ASB, ANZ, Kiwi) consensus of 7.1%. That's good.

Sadly non tradable inflation came in at 6.8%, inline with consensus of 6.8%. This is where the battle needs to be won.

It’s coming down ….that’s the main thing and March qtr annualised it’s only 4.8%

Come June qtr headline rate will only be about 5%

Panic over