Black Monday

[bull....]

Ah a new market paradigm! 'It is different this time.' Those of us who have been around the market for a while have heard this before, more than once. I can see myself owning a Tesla vehicle in the future, but the chances of me owning Tesla shares? Get back to me when positive cashflow is on the horizon.



It is the small percentage of shareholders that bought MCY shares at $5.50 I am concerned about. I am not suggesting that buying CEN and MCY is a bad thing overall. Indeed I have a good chunk of my savings in each myself. But the time to buy in was when I did, when the market was scared the Greens would force the gentailers to sell their electricity to the market at historical generation cost, and when Origin in Australia were quitting their CEN stake which depressed the price. Not today. Drought years usually fuel short term fears in the electricity market. That would be my signal to start looking again at MCY and CEN. Falling interest rates are expected and already built into the gentailers prices in my view. The market always looks ahead and will have already priced in future interest rate cuts.

Nothing wrong with having gentailers in your investment portfolio. But not a any price.

SNOOPY

using mcy as an example a 3 odd % return is far better than a 1% in term deposits most likely sometime next year. overseas experience from very low rates shows people will pay up for stocks when the return is higher and stable.

[Zaphod]

using mcy as an example a 3 odd % return is far better than a 1% in term deposits most likely sometime next year. overseas experience from very low rates shows people will pay up for stocks when the return is higher and stable.

True, but I would add that we should still exercise a cautious approach to purchasing shares depending where we are currently located in the economic cycle. I'm hearing more people stating they're going to buy in to something, anything, in the stock market, at any price, because interest rates are so low. That's a recipe for disaster, although not what you are advocating of course.

[bull....]

Ready for a 1.5% mortgage rate?

The Reserve Bank is preparing to lend fresh money to banks at negative interest rates from early next year, which would allow them to cut mortgage rates as low as 1.5 percent, Bernard Hickey reports

https://www.newsroom.co.nz/ready-for-a-15-mortgage-rate

[Entrep]

If professional players can have their judgement affected in this low interest rate environments, what does that say for the rest of us? Those who rushed to buy Contact Energy at $9 to secure an income stream, could now spend more than a decade trying to bank their income just to get back to the start point where their capital losses are recovered. A great utility can still be overpriced and make a terrible investment because of that. Fear of Missing Out (FOMO) will in general lead to poor investment decisions, as people overpay for what they think is a 'safe income paying investment'. Unforeseen crises will see to it that the thinking investor will not be too late to grab investment opportunities, even if they have to exercise some patience. Earning 1% on a bank term deposit or less might be a bitter pill to swallow. But it beats losing 20% of your capital on an investment that has not been thought through. My message to investors at this time is 'Be patient' and 'Be careful'. With FOMO we may be entering a period of investor foolishness, where experienced investors can sell certain utility investments at overinflated prices to the FOMO crowd. Cashing up on the madness (or putting it in the can investment parlance slang) may prove to be the way to and prevent you becoming a penny constrained old fool.

Great advice

Ready for a 1.5% mortgage rate?

The Reserve Bank is preparing to lend fresh money to banks at negative interest rates from early next year, which would allow them to cut mortgage rates as low as 1.5 percent, Bernard Hickey reports

https://www.newsroom.co.nz/ready-for-a-15-mortgage-rate

Cash is pure trash. Time to back the truck up and load up on debt.

[bull....]

Great advice




Cash is pure trash. Time to back the truck up and load up on debt.

even better is lots of debt and safe utility dividends and a safe job

[bull....]

Powell is on the side of the bulls’ — Cramer calls Fed chief’s speech ‘incredible’ for investors


https://www.cnbc.com/2020/08/27/jim-...investors.html


Federal Reserve Chair Jerome Powell unveiled a new approach to setting U.S. monetary policy, letting inflation and employment run higher in a shift that will likely keep interest rates low for years to come

https://www.bloomberg.com/news/artic...d=premium-asia

[bull....]

US futures roaring higher in after hours

[sb9]

US futures roaring higher in after hours

30k will be taken out soon as salesforce, amgen and honeywell added to the index along with added fuel from FED.

[Hoop]

welcome to the cuckoo's nest

[bull....]

30k will be taken out soon as salesforce, amgen and honeywell added to the index along with added fuel from FED.

more tech like business added and companies like exon removed reflects the changing nature of the world which is a good move.