The trouble is that the sp isnt dropping in nz due to the virus, its the reaction of the govt damaging tourism and logs etc. So I don't think that nzx will see such a bounce back to the previous highs.
The trouble is that the sp isnt dropping in nz due to the virus, its the reaction of the govt damaging tourism and logs etc. So I don't think that nzx will see such a bounce back to the previous highs.
Lew the way it works, is the govt follows the advice of our public health experts, & they would be foolish to ignore their advice.
To suggest the NZ share market drop is nothing to do with Coronavirus, but because the govt has set out to 'damage tourism and logs etc' is simply beyond comprehension.
There's no need to politicise everything, what would you have them do?
We followed Australia & the US by 1 day.
They have to walk a fine line between protecting the country from the virus without overreacting.
It's deeply complex & difficult, some of it (like the log exports) completely beyond our control but so far they seem to have got it about right.
Last edited by Blue Skies; 04-02-2020 at 08:31 AM.
Lew the way it works, is the govt follows the advice of our public health experts, & they would be foolish to ignore their advice.
To suggest the NZ share market drop is nothing to do with Coronavirus, but because the govt has set out to 'damage tourism and logs etc' is simply beyond comprehension.
There's no need to politicise everything, what would you have them do?
We followed Australia & the US by 1 day.
They have to walk a fine line between protecting the country from the virus without overreacting.
It's deeply complex & difficult, some of it (like the log exports) completely beyond our control but so far they seem to have got it about right.
Yeah, I'm not having a go. Im just saying, that's the reason. To clarify: someone asked if the sp drop was due to coronavirus. imo the sp is going down due to the damage from the govt decision to block tourists, logs, etc. Not due to concerns of the virus killing off the world's population or making people so bed ridden that they can't get out buying stuff. So, if the virus was deemed to be less damaging than thought or cured, there would still be damage to the balance sheet; hence i don't think it will recover too previous highs.
I did ponder what I would do if it were me in charge. It's an ethical black hole that goes deeper and deeper the more you think about it. Then i realised that I'm not in charge, and I can't change anything, and I don't have to think about it. So i stopped thinking about it.
PS: kind of sick of people taking what i say, turning it into something different, then having a go at me for the thing they just made up:
"...the govt has set out to 'damage tourism and logs etc' is simply beyond comprehension..."
Classic black swan event. From a market perspective alone it's timing could not be worse. The market has been looking for a reason to turn, it may have found it.
Yeah, I'm not having a go. Im just saying, that's the reason. To clarify: someone asked if the sp drop was due to coronavirus. imo the sp is going down due to the damage from the govt decision to block tourists, logs, etc. Not due to concerns of the virus killing off the world's population or making people so bed ridden that they can't get out buying stuff. So, if the virus was deemed to be less damaging than thought or cured, there would still be damage to the balance sheet; hence i don't think it will recover too previous highs.
I did ponder what I would do if it were me in charge. It's an ethical black hole that goes deeper and deeper the more you think about it. Then i realised that I'm not in charge, and I can't change anything, and I don't have to think about it. So i stopped thinking about it.
PS: kind of sick of people taking what i say, turning it into something different, then having a go at me for the thing they just made up:
"...the govt has set out to 'damage tourism and logs etc' is simply beyond comprehension..."
Rude and stupid.
Hey Lew, apologies, I misinterpretted what you meant & should have been more careful with my choice of words.
It's just I get a little irritated seeing comments on here blaming the govt for being asleep at the wheel & at the other extreme for over reacting, politicising the whole thing when we know it's extremely complicated, working on incomplete information, & any action or response comes with a cost just as doing nothing also has big risks.
Ministers are taking best advice from public health experts, walking a fine line between protecting us from an outbreak while trying not to antagonise our main trading partner & cripple the economy. Impossible, opposing goals!
Anyway this hot weather diabolical, little sleep, feeling a bit grumpy this morning, hope there's no hard feelings.
BTW surely our govt hasn't blocked the logs? I wouldn't know but assumed that was from China?
(Just read in the Gisborne Herald, the reason exporters have stopped buying logs is because there's not enough people at work in the ports in China to unload them from the ships when they arrive, due the Chinese govt extending the New Year shut down period. Nothing to do with our govt. )
Last edited by Blue Skies; 05-02-2020 at 08:38 AM.
Reason: update reason for log export stoppage
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Originally Posted by Lewylewylewy
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