Black Monday

[causecelebre]

Supposedly the RBNZ mandate doesn't extend to house prices either:


In a speech in 2021, RBNZ Governor Adrian Orr said that "house prices are too high and rising too fast". He warned that "high and rising house prices are a threat to economic stability" and that "they can lead to financial instability, inequality and social unrest".

In a recent speech, Orr said that "the housing market is still too hot" and that "more needs to be done to cool it down". He hinted that the RBNZ may take further steps to cool the market, such as raising interest rates further or introducing a capital gains tax on housing.


Here are some additional comments that the RBNZ has made about house prices in New Zealand:


"House prices are a risk to the economy."
"We need to do more to make housing more affordable."
"We are committed to working with the Government to address the housing crisis."
"We will continue to monitor the housing market closely."

[Valuegrowth]

High and rising land prices affect lending, investment and productivity. High property prices also can have damaging economic effects. Not a good- sign for the financial system and broader economy.

[Daytr]

Supposedly the RBNZ mandate doesn't extend to house prices either:


In a speech in 2021, RBNZ Governor Adrian Orr said that "house prices are too high and rising too fast". He warned that "high and rising house prices are a threat to economic stability" and that "they can lead to financial instability, inequality and social unrest".

In a recent speech, Orr said that "the housing market is still too hot" and that "more needs to be done to cool it down". He hinted that the RBNZ may take further steps to cool the market, such as raising interest rates further or introducing a capital gains tax on housing.


Here are some additional comments that the RBNZ has made about house prices in New Zealand:


"House prices are a risk to the economy."
"We need to do more to make housing more affordable."
"We are committed to working with the Government to address the housing crisis."
"We will continue to monitor the housing market closely."

That's now out of date. Part of their mandate now includes house price stability.

[gbogo]

looks like “sell in May and run away..”!

[causecelebre]

That's now out of date. Part of their mandate now includes house price stability.

Ah yes, the Finance Ministers "Financial Policy Remit".

[Valuegrowth]

Sometimes you can miss the biggest gain in the market.

looks like “sell in May and run away..”!

https://www.cityam.com/should-you-re...uth-old-stock/

[Valuegrowth]

https://www.forbes.com/sites/randywa...h=5ea4cdb66a3b

Quoted from the above link.
"There is an old stock market adage that states that every year one should “sell in May and go away”, not reinvesting in equities until November. This saying is based on the generally held principle that stocks rise more in the 6-month period from November to April than from May to October. The fact that significant market declines have occurred in late summer or early fall – like the 1987 market crash – has helped to reinforce this belief."

Sometimes you can miss the biggest gain in the market.
https://www.cityam.com/should-you-re...uth-old-stock/

[ValueNZ]

https://www.forbes.com/sites/randywa...h=5ea4cdb66a3b

Quoted from the above link.
"There is an old stock market adage that states that every year one should “sell in May and go away”, not reinvesting in equities until November. This saying is based on the generally held principle that stocks rise more in the 6-month period from November to April than from May to October. The fact that significant market declines have occurred in late summer or early fall – like the 1987 market crash – has helped to reinforce this belief."

Why would it make a difference what month it is as to whether you should invest in equities? Your job as an investor is to find underpriced equities and sell them if they become overpriced. If I find a stock that is trading at an attractive price in May, why the hell would I wait until November to invest?

[SailorRob]

Why would it make a difference what month it is as to whether you should invest in equities? Your job as an investor is to find underpriced equities and sell them if they become overpriced. If I find a stock that is trading at an attractive price in May, why the hell would I wait until November to invest?

Thanks ValueNZ I was going to comment but I have put a lot of time and effort into trying to push back on Valuegrowths theories and show them alternative views but I have got precisely nowhere.

[bull....]

all hail the AI ... anyway breaking out above 4200 ? that would imply a move back close to highs