I feel like the NZ market for the most part has had companies in the ball park of fair valuation up until the last year or so. Meanwhile in the US I just canÂ’t get my head around how people can justify value in most of the popular stocks. ItÂ’s all printed money ending up in the market right? Or am I wrong? ItÂ’s not Mum and dad taking their billions out from the walls.
Interesting fact from a Joe Rogan Podcast
In the last 30years the bottom 50% of Americans have seen their wealth decrease by $900bn. In the same time the top 1% has seen an increase of $21trillion.
We havenÂ’t experienced that until now where a large investor shift is occurring. The BB gen need yield, and yes smart property and low interest rates will still make that play valid, but I canÂ’t help but think people are over 1987 and are really getting back in the game now. They can get great yield from an inflation protected asset without worrying about tenants. ItÂ’s not gonna go vertical like the US but I really think that these BB will need somewhere to stick the 3million they made off their property sale. Heck buy bank shares and make money off whoever had to buy your house and mortgage it up! (Not complaining, just observing)
I just see this shift in ‘older’ people I know and am making generalizations with no fact to back it up, but it’s an opinion I’ll put out there.
Bookmarks