Black Monday

[blobbles]

Looking pretty grim isn’t it blobbles.

Short term, yes. However I never bet against human ingenuity. We will be better in the long run, but this may see the end of a whole lot of ways of working which will probably be good for us.

Provided we don't get some stupid wars and we kick along applying our intelligence and humanity, we will most likely come up with some good new ways of doing things. Which will (hopefully) include more resilience and less of the stupendously bad monetary policy and rapacious capitalism that has stolen the wealth of future generations (climate change/energy drawdown etc). The things I hope we will realise as a species:

• Energy based global currency based on an energy unit with modifiers for dirty vs clean energy. Bit coin enabled, spendable everywhere (too many resources wasted on fiat currency exchange)
• Resilient systems - not single factory in single country with resources for production coming from single places. It works for economies of scale reasons, but enforces a brittle system
• Reduction in asset prices to sensible valuations, particularly housing which has devastated and polarised generations
• Degrowthing and population restrictions along with mass uptake of less meat based diets - fake meat is great
• More local, community thinking and planning - we keep thinking the leaders are smart and have all information when they more and more have neither smarts nor full information
• Technology led revolution in AI and robotics with a UBI. Encouragement for people to work in any field - there are too many people passionate about one thing while not having the ability to pursue it - super smart taxi drivers and ridiculously intelligent farmers who could apply their skills to push humanity forward. Such a change could result in a second Renaissance as people were freed to push into the arts and advanced fields of study they are passionate about. Removal of the need to work to live - everyone has enough for basic food/rent/power/clothes. Instead you work to drive humanity forward and payment is based on your long term success, not how much you can game the system short term.
• Clear focus on long term goals, not short term at the expense of long term

Further out: colonisation of other planets. Needs to happen as humanity should hopefully realise this tiny blue dot - spec of dust in the solar system is very, very fragile.

[blobbles]

Blobbles, you mentioned you have cash transferred around, but that NZ Banks are not safe, can I ask where you have put your cash? If you would rather not share that’s ok too. Anyone else like to share what they have done with their cash.
I’ve purchased some kiwi bonds, and have term deposits in the Kiwibank as I feel it’s the safest bank as it’s owned by the government. But very keen to hear what others are doing...

Depends on your situation, but you can get 250k guaranteed in Aus (as I understand) and can fairly easily open bank accounts in other countries. I have some in US/Aus and the same as you - mostly in Kiwibank. Kiwibonds and shares in companies that aren't overvalued and provide returns (power companies for instance) would be a good place to put cash.

We don't need a huge property correction in this country for our banks to be near enough to insolvent (60% of all lending in residential lending, 25% of which is interest only?), which is why you see the RB coming out swinging delivering more to the banks than they asked for or needed. In the long term the moral hazard of such actions is huge, in the short/medium term it still might not be enough.

I have a particular disdain for property spruikers who only a few months ago were forecasting even more price growth because of high migration, low interest rates, lack of supply and (in not so many words) loose lending policies. The first of those has likely disappeared, the second has hit the bottom and will probably go the other way, the third is about to get an AirBnB listing bomb combined with a heap of housing coming online that was being built for those yet to arrive migrants who may now never come. The fourth will be looked at very carefully by the RB during a downturn. Yet they are all saying the virus is a a minor kerfluffle, everything will be back to "normal" soon, forgetting it wasn't normal before. I am picking us to have an Ireland like correction, particularly as unemployment skyrockets.

[Traderwannabe]

Is it possible to open an Australian bank account while residing in NZ?

[King1212]

Don't have that many cash...so...yeahh pretty safe at the moment.

[Valuegrowth]

Given this coming shift in market sentiment, it is time to start thinking about value. Where do we find very attractive stocks (Shares of companies with strong balance sheets)?

With rates going to zero, stocks are good value. People like us don't understand why markets are rallying; we need a better view of how markets work.
What’s the 30 year yield today? 1.35%. Don’t you think stocks are cheap (I mean not overvalued stocks)?

[Cyclical]

Depends on your situation, but you can get 250k guaranteed in Aus (as I understand) and can fairly easily open bank accounts in other countries. I have some in US/Aus and the same as you - mostly in Kiwibank. Kiwibonds and shares in companies that aren't overvalued and provide returns (power companies for instance) would be a good place to put cash.

We don't need a huge property correction in this country for our banks to be near enough to insolvent (60% of all lending in residential lending, 25% of which is interest only?), which is why you see the RB coming out swinging delivering more to the banks than they asked for or needed. In the long term the moral hazard of such actions is huge, in the short/medium term it still might not be enough.

I have a particular disdain for property spruikers who only a few months ago were forecasting even more price growth because of high migration, low interest rates, lack of supply and (in not so many words) loose lending policies. The first of those has likely disappeared, the second has hit the bottom and will probably go the other way, the third is about to get an AirBnB listing bomb combined with a heap of housing coming online that was being built for those yet to arrive migrants who may now never come. The fourth will be looked at very carefully by the RB during a downturn. Yet they are all saying the virus is a a minor kerfluffle, everything will be back to "normal" soon, forgetting it wasn't normal before. I am picking us to have an Ireland like correction, particularly as unemployment skyrockets.

Pretty grim picture you paint there Bobbles. My take on it though is that while there will be a world of pain that most have yet to accept, policy makers will manage to kick the can further down the road for a lot of it, and it'll probably take a revolution before the system is properly fixed/reset, God forbid.

Regarding banks, there is a really good NZ one that is often overlooked...TSB. Old as the hills and solid.

[bull....]

Attachment 11278

DJI bearish wedge pattern on the hourlies , might play out , might not but worth keeping an eye on. meets the criteria under 50% retracement , declining volume.

[blobbles]

Is it possible to open an Australian bank account while residing in NZ?

Quick google: https://www.thecurrencyshop.co.nz/gu...om-new-zealand

The FCS appears to apply to all deposit accounts in banks that are domiciled in Aus holding AUD: https://www.apra.gov.au/types-of-acc...-claims-scheme

[kiwico]

Is it possible to open an Australian bank account while residing in NZ?

I opened my CBA account via ASB, you just have to be "moving" to Australia. This may be a little more difficult now of course.

As and when we can travel again it's very easy opening a NAB and NABTrade account in Oz. Makes it much easier to trade on the ASX.

[bottomfeeder]

Bank fees are high in Aussie, but I spread my term deposits around all the banks, so at least if they start to topple, my so called haircut as specified by the RBNZ won't be as much. Plus it was very hard to put funds into Kiwibonds at .5%. But I but the bullet there, and am increasing my percentage being held in NZ shares. What do you do, nothing will probably bring certainty. Just have to grin and bear it. But am looking forward to getting some competitive quotes to get some work done at home, and on top of that, some eagerness to turn up and complete the job.