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  1. #11
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    Quote Originally Posted by Mista_Trix View Post
    XRO.ax is done, I think the growth has slowed too much for where it's currently valued.
    Bill.com, the new xero maybe.

  2. #12
    Member 101nick101's Avatar
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    Time to buy Shiba Inu dips
    🚀🚀🚀 Tendies 🚀🚀🚀

  3. #13
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    Fixed cost base not particularly susceptible to inflation, especially to business with low labour to expense ratio and low external inputs, eg electricity generation - depreciation big cost not cash and on historical assets. Tolling operations are very good, eg STU, PGW, telcos , generators. REIT not good.

  4. #14
    ShareTrader Legend Beagle's Avatar
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    Default Inflation and higher interest rates are big problems going forward

    A timely thread and we should all be thinking very hard about this question as not only was the latest quarterly inflation figure of 2.2% a surprise (8.8% annual rate) the well known issues about supply chain and freight cost challenges makes it fairly certain that we're not going back into a tame inflation environment anytime soon.

    I don't pretend to have many answers here because the current situation we're faced with as an economy is unprecedented and we're basically in unchartered waters with a real risk of stagflation rearing its ugly head.

    Companies with a well defined and entrenched market position, pricing power and the ability to grow dividends over time appear to best placed
    I think there will be an ongoing trend towards the personal safety of one's own transportation and Turners are already the biggest player here with a clearly defined growth strategy which if executed will see them growing dividends over time. The tailwinds in this sector are well known and I believe they will be enduring. They are known to take and keep Covid support...depending on how one views this sort of thing that will either be a positive, (me) or negative for some others.

    Others that appear to have pricing power would be the retirement sector and most especially those that have not necessarily already passed on much in the way of price increases in their units relative to the rampant property market in recent years. I own OCA and ARV and both appear well placed to grow dividends over time and both should attract strong demand for their units in these unprecedented times. Notwithstanding where the real estate market may head in the next year or two both should be able to at least capture the inflation element with their pricing. SUM may also be well positioned, (not held) RYM's who's units are almost always on the most expensive side of the ledger in this sector may have less pricing power. Debt in these companies will get inflated down, RYM will benifet the most with its highest leverage in this sector.

    HGH has the proven ability to grow dividends over time and is on reasonable metrics. Financials' usually do very well in a rising interest rate environment.

    I had a look at Govt inflation linked bonds the other day. Kind of a "nothing bet" because all they do is match inflation and at the end of the term you pay tax on the inflation indexing component so after tax you're not matching inflation.

    This thread could easily also have be titled equities for a higher inflation and higher interest rate environment. REIT's and Gentailiers probably won't do so well but nonetheless I hold GNE and ARG for their high yields in this sector and am hoping the highest yield in each class ameliorates any capital erosion.

    I am looking forward to reading others suggestions.
    Last edited by Beagle; 22-10-2021 at 03:08 PM.
    Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.

  5. #15
    Senior Member bottomfeeder's Avatar
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    If we knew exactly which equities were inflation proof, they would now be too expensive to buy. But I have thought for a while that inflation was way in excess of the quoted CPI. Now governments are saying inflation is just transitory. What a load of rubbish. Inflation will get worse, asset inflation is up, they are printing money in unprecedented amounts. They thought they could control inflation with interest rates, but now find that they printed money to move the economy, and if they increase interest rates it will stifle the economy. So they call inflation transitory, in other words, it will fix itself up and governments dont need to do anything. What will happen in the near future, is that to fund the money printing, they will keep interest rates fairly low and the high inflation will shave value from all those that have cash. So the first rule us get out of cash. While you can make money out of crypto and many have, I wouldnt touch it. So I am heavily invested in property ie OCA and ARV. I have some APL, even though I think this sector will stagnate. But I have recently been investing heavily in gold. That is Gold miners in Australia. I believe in future months, economies and currencies will collapse. Even though Gold seems at a high, I feel it will at least double. Hell I am not looking to make money, I am just hoping it doesnt get lost, or eaten away by inflation and government stealth. Oh yeah, I have a host of others as I am trying to cover every base. ZEL, SKT, AMP, CVT, ATM. I just have very little direction, anything to get rid of cash.

  6. #16
    ShareTrader Legend Beagle's Avatar
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    Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.

  7. #17
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    We have had low imported inflation for many years but domestic inflation has been much higher. Now we have a commodity boom and a consequent huge spike in inflation.
    It was always going to happen sooner or later and will eventually reverse.
    What we don't want is high inflation expectations because that causes high inflation.

  8. #18
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    I don't know why its a political issue in the US. All those medical, student and consumer loans are being eroded by 5%.

    The low information crowd don't know whats good for them.
    Last edited by Panda-NZ-; 24-10-2021 at 11:05 PM.

  9. #19
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    Quote Originally Posted by Panda-NZ- View Post
    I don't know why its a political issue in the US. All those medical, student and consumer loans are being eroded by 5%.

    The low information crowd don't know whats good for them.
    government debt, too....

  10. #20
    ShareTrader Legend Beagle's Avatar
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    Quote Originally Posted by bottomfeeder View Post
    If we knew exactly which equities were inflation proof, they would now be too expensive to buy. But I have thought for a while that inflation was way in excess of the quoted CPI. Now governments are saying inflation is just transitory. What a load of rubbish. Inflation will get worse, asset inflation is up, they are printing money in unprecedented amounts. They thought they could control inflation with interest rates, but now find that they printed money to move the economy, and if they increase interest rates it will stifle the economy. So they call inflation transitory, in other words, it will fix itself up and governments dont need to do anything. What will happen in the near future, is that to fund the money printing, they will keep interest rates fairly low and the high inflation will shave value from all those that have cash. So the first rule us get out of cash. While you can make money out of crypto and many have, I wouldnt touch it. So I am heavily invested in property ie OCA and ARV. I have some APL, even though I think this sector will stagnate. But I have recently been investing heavily in gold. That is Gold miners in Australia. I believe in future months, economies and currencies will collapse. Even though Gold seems at a high, I feel it will at least double. Hell I am not looking to make money, I am just hoping it doesnt get lost, or eaten away by inflation and government stealth. Oh yeah, I have a host of others as I am trying to cover every base. ZEL, SKT, AMP, CVT, ATM. I just have very little direction, anything to get rid of cash.
    Good post. Property has almost always been a good place to invest in inflationary times. Not sure we'll get a lot of movement in "the beached whale" anytime soon but over the long run it should be fine.
    Last edited by Beagle; 25-10-2021 at 10:04 AM.
    Ecclesiastes 11:2: Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.

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