SUM - Summerset Group

[dabsman]

cash is gunna be king when the next crash happens

Cash is always king in a crash - is Summerset crashing?

[minimoke]

cash is gunna be king when the next crash happens

How big is this crash going to be? I'm up 57% in six months on SUM so I figure I can take this size hit and still be break even.

Crashes aren't bad - if you look at markets they invariably stride off to new highs not long after a crash.

(best you be aware we have no government guarantee on cash deposits - so I'd be wary of evn having cash)

[winner69]

Property market still pretty strong
https://www.reinz.co.nz/Media/Defaul...May%202018.pdf

Good for Summerset et al

News makes that $100m forecast even more certain

[Snoopy]

Cash is gunna be king when the next crash happens.

Be very careful if your cash is in New Zealand when the crash comes. NZ is one of the few countries without any government guarantees on bank accounts. I think that you will find that cash in an NZ bank account in the event of a market wide crash will see cash deposit holders taking a haircut. I expect a threshold on this so that those with cash assets of under $10,000 or so would not be affected. But if you wish to park your investment cash in NZ bank accounts, I would advise you to spread that cash around amongst multiple banks.

SNOOPY

[couta1]

Be very careful if your cash is in New Zealand when the crash comes. NZ is one of the few countries without any government guarantees on bank accounts. I think that you will find that cash in an NZ bank account in the event of a market wide crash will see cash deposit holders taking a haircut. I expect a threshold on this so that those with cash assets of under $10,000 or so would not be affected. But if you wish to park your investment cash in NZ bank accounts, I would advise you to spread that cash around amongst multiple banks.

SNOOPY

I wonder if that haircut would apply to your ANZ Securities account, soon to be a FNZC cash management account? Technically not a bank account?

[minimoke]

I wonder if that haircut would apply to your ANZ Securities account, soon to be a NZFC cash management account? Technically not a bank account?

Which is why mine is running at near $0 and will get topped up when the need arises.

[couta1]

Which is why mine is running at near $0 and will get topped up when the need arises.

I would have thought that once FNZC take over, your cash management account is no longer a bank account in the true sense?

[Onion]

I would have thought that once FNZC take over, your cash management account is no longer a bank account in the true sense?

I think ANZ will still effectively run a bank account for FNZC. In the terms and conditions I seem to recall that FNZC will take a slice of the interest that ANZ will pay on the account.

[Brain]

Be very careful if your cash is in New Zealand when the crash comes. NZ is one of the few countries without any government guarantees on bank accounts. I think that you will find that cash in an NZ bank account in the event of a market wide crash will see cash deposit holders taking a haircut. I expect a threshold on this so that those with cash assets of under $10,000 or so would not be affected. But if you wish to park your investment cash in NZ bank accounts, I would advise you to spread that cash around amongst multiple banks.

SNOOPY

You forgot to mention Gold. From time to time I think about buying a gold bar or Two. If concerned about security it could be buried in the garden much like a dog buries a bone.
Maybe one for the garden and one as a paper weight for the office.

[Filthy]

You forgot to mention Gold. From time to time I think about buying a gold bar or Two. If concerned about security it could be buried in the garden much like a dog buries a bone.
Maybe one for the garden and one as a paper weight for the office.

reckon you might be better off buying a shot-gun if the banking system fails. it would be anarchy