Black Monday

[BlackPeter]

So then, we should all just be buying gold now? Why are we buying shares?

Your words, not mine.

From a personal perspective - I try to hold onto (and increase my holding of) shares of companies producing real and useful stuff people will always need (food, energy, ...). Given that nobody knows where the mortar will explode I think that diversification (shares, property, cash, and yes, some gold as well) is sensible.

As well, given that the bang might well be still years away - why would anybody want to miss out the share price inflation rising up to the peak?

Anyway - DYOR. Listen with an open mind and avoid to put your words into other peoples posts .

[Biscuit]

Your words, not mine. .....Anyway - DYOR. Listen with an open mind and avoid to put your words into other peoples posts .

No offense intended BP, not sure which of my words you think I put in your post?

[BlackPeter]

No offense intended BP, not sure which of my words you think I put in your post?

Well, you asked "So then, we should all just be buying gold now?" and "Why are we buying shares?" as response to my post.

It sort of felt you think I was encouraging the first and disencouraging the second activity, which I didn't.

... but anyway, never mind and no harm done.

[Biscuit]

Well, you asked "So then, we should all just be buying gold now?" and "Why are we buying shares?" as response to my post.

It sort of felt you think I was encouraging the first and disencouraging the second activity, which I didn't.

... but anyway, never mind and no harm done.

You read too much into what I said. I asked the question as my own hypothetical pondering following on logically from my comments, your comments, blackcap's comments and Bull's comments. I can assure you I am not trying to get at you or criticise your comments.

[bull....]

Again, this happened last time we had a 39c top tax rate. Remember that house price boom in the 2000s? Westpac research suggests house prices rose 17 per cent simply due to that 39c top tax rate. That will happen again

https://www.stuff.co.nz/national/politics/opinion/122723279/election-2020-wholl-gain-from-labours-plan-to-tax-the-rich-the-rich

[Stranger_Danger]

So then, we should all just be buying gold now? Why are we buying shares?

Yes, you should be buying gold and profitable debt free gold miners and, maybe, if you have the specialist analytical skills required, selected juniors/explorers.

Gold is a difficult sector longer term, very volatile, and any investment into it should be considered higher risk.

However, with the setup we currently have, anybody that has a zero allocation to gold is out of their mind.

I'm not suggesting going "all in", especially at these elevated prices (a further pullback, short term, is very possible). But 5-15% makes a lot of sense, towards the higher end if younger with more risk tolerance.

If one doesn't want to sell equities to invest in the gold sector, don't. Fund it by reducing your bond allocation - because that asset class is where the real irrationality lives.

[ynot]

- because that asset class is where the real irrationality lives.[/QUOTE]

I think you are right there. Currently some NZ real-estate is selling at crazy prices. I'm sure this will correct.

[Blue Skies]

Unemployment looks the most imminent threat to asset prices to me.
It's all very well if you have a secure well paying job, but if companies are struggling & everyone around you is struggling on a reduced income or losing their job and can't pay the mortgage or rent, surely thats going to flow on to asset prices. I know in the UK there's a lot of worried people on furlough from work, feeling extremely insecure about their future when Govt support runs out. Same could happen here.

[ynot]

Unemployment looks the most imminent threat to asset prices to me.
It's all very well if you have a secure well paying job, but if companies are struggling & everyone around you is struggling on a reduced income or losing their job and can't pay the mortgage or rent, surely thats going to flow on to asset prices. I know in the UK there's a lot of worried people on furlough from work, feeling extremely insecure about their future when Govt support runs out. Same could happen here.

WILL happen here.

[JBmurc]

Unemployment looks the most imminent threat to asset prices to me.
It's all very well if you have a secure well paying job, but if companies are struggling & everyone around you is struggling on a reduced income or losing their job and can't pay the mortgage or rent, surely thats going to flow on to asset prices. I know in the UK there's a lot of worried people on furlough from work, feeling extremely insecure about their future when Govt support runs out. Same could happen here.

Yes it seems NZ property is in a perfect storm of upside dirt cheap money with talk of sub 2% fixed term rates next year , limited numbers of property as speculation(new builds) hasn't keeped up with demand that isn't cooling.. and really the hunt for investment ... where else can it go .. NZX getting hacked and limited sectors to invest.. banks offering ever lower deposit rates.

Now if I'm right and 2020 is the start of the next great resources bull market to feed the likes of EV's -tech demand etc , Copper + other base metals = infrastructure spend--Gold Silver- hard currency Central Banks ongoing buying ---financial re-set worries etc

,,, just maybe more Australia's + international investors will continue to forward funds into these sectors (ASX one of the best markets to do it!!).. maybe this ongoing bull market along with sky-high property prices + easy credit will finally open the can of major Inflation ??? the FED states it's happy to let inflation run ... will we be the same and keep rates low while prices of goods+ assets continue to Bubble higher ?? ..

IMHO as soon as inflation needs to be contained increasing rates will be the only tool left ...but this time it won't contain but pop the bubble ...