Black Monday

[bull....]

Food prices were up 12.5% in the year to April 2023 - which is the highest annual rate of increase seen since 1987

https://www.interest.co.nz/personal-...-rate-increase

market down savagely on the food inflation

[SailorRob]

The way Robbo's spending is going - Comrade Parker might be out with a proposal to see how much tax
he can shake loose out of the Sector - as a bit of Dividend RWT might not be quite enough

Even the Politicians like a juicy opportunity

in some camps such windfalls are expected to be shared around

Yes indeed.

Being a NZ tax resident is a choice for me, so that's something I guess.

[Valuegrowth]

I get the feeling that Monday maybe not so hot...anyone care to comment.

Fortunately,we didn't experience a Black Monday like in 1987. Next we had a financial crisis in 2008. Remember how many financial companies went under water (went to receivership )in New Zealand? Many lost money in investing in stocks and property market .

Will there be another one?

Yes. If asset prices go up well above their sustainable level.

https://www.investopedia.com/article...recessions.asp

[Valuegrowth]

[Daytr]

Copper smashed overnight. Copper is typically seen as the canary in the coal mine for global economic health.
Interesting times.

[BlackPeter]

Copper smashed overnight. Copper is typically seen as the canary in the coal mine for global economic health.
Interesting times.

Well, not sure about the times (copper related), but at least your choice of words is interesting ....

So - copper went down from USD 3.85 to USD 3.70, a shocking drop of 4%!

If we look at last years jitter (see chart), copper is well in the upper half of its natural jitter, and nothing extraordinary happened.

Daytr's Coppersmash.JPG

If you call this quite normal jitter "Smash"- how would you call it then if something unusual happens in the markets?

[Daytr]

Yes I am quite happy with the wording I used. 4% in a day is big move in anyone's book including from someone who traded copper professionally. It also broke a reasonably big technical level which would have seen longs covering and shorts entering which would have exaggerated the move.

[SailorRob]

Yes I am quite happy with the wording I used. 4% in a day is big move in anyone's book including from someone who traded copper professionally. It also broke a reasonably big technical level which would have seen longs covering and shorts entering which would have exaggerated the move.

4% is nothing, look how many 4% moves there are in a year.

If you traded copper professionally and were good at it why did you stop.

[bull....]

Yes I am quite happy with the wording I used. 4% in a day is big move in anyone's book including from someone who traded copper professionally. It also broke a reasonably big technical level which would have seen longs covering and shorts entering which would have exaggerated the move.

15th april ( sat morning nz time but normal hrs off-shore)was the best spot to go short on the failed up side break from range trading , last nights plunge was failure to break back into the range from breakdown of the range ... anyway thats how i see it

[alokdhir]

https://www.stuff.co.nz/business/pro...-investor-says

This leads to very little new investment in residential property ? New builds still will work old way ...so it encourages new build as an investment property ...but overall recent new landlords or additions will turn sour very soon ...50% interest deductibility already gone ...in another 2 all will go then all recent properties will become big cash flow negative ...shud have some effect on economy per se ...land lords are mostly middle income folks thus they in trouble will help RNBZ nail inflation faster ...this is additional increasing burden on their cash flows or money in hand ...this time higher rates plus this newer tax treatment of interest deductibility working in tandem ...shud reduce inflation faster ...Unless Bull has other spin on this ...lol

Now u cant leverage into rental market as mortgage paid is not an expense anymore ...so need full equity for better cash flows ...then maybe Sharemarket has come to equal footing and can offer better returns and growth then rental property with 100% equity