NZSX50 - Good News!

[bull....]

Simplicity declares war with 2.95% mortgage

https://www.goodreturns.co.nz/articl...-mortgage.html


the chinese banks and now simplicity , the pressure is going on the aussie banks to drop mortgage rates under 3% which means if they do lower deposit rates will have to come.

[dobby41]

Simplicity declares war with 2.95% mortgage

https://www.goodreturns.co.nz/articl...-mortgage.html


the chinese banks and now simplicity , the pressure is going on the aussie banks to drop mortgage rates under 3% which means if they do lower deposit rates will have to come.

With $50mil it isn't much of a 'war'.
More like a skirmish or even a playground scrap.

[bull....]

With $50mil it isn't much of a 'war'.
More like a skirmish or even a playground scrap.

just the start from what i read , and using it to supplement there declining income from term deposits.

[sb9]

Afternoon trading seem to bring bargain hunters on board across various stocks.

[SailorRob]

Anyone have any insight or opinion as to the effect of all time low bond yields/OCR on the PE of the NZSX50?

Thanks in advance.

[BlackPeter]

Anyone have any insight or opinion as to the effect of all time low bond yields/OCR on the PE of the NZSX50?

Thanks in advance.

I guess at face value pretty obvious. OCR down means PE will go up, given that money will keep flowing from low interest accounts into stocks.

Obviously - this is only true as long as nothing terrible happens on the share market (which might be just one Twitter message away).

[couta1]

Afternoon trading seem to bring bargain hunters on board across various stocks.

Lol, what bargains excepting A2.

[winner69]

I guess at face value pretty obvious. OCR down means PE will go up, given that money will keep flowing from low interest accounts into stocks.

Obviously - this is only true as long as nothing terrible happens on the share market (which might be just one Twitter message away).

PE going gangbusters ....while forecast EPS keeps declining

[SailorRob]

I guess at face value pretty obvious. OCR down means PE will go up, given that money will keep flowing from low interest accounts into stocks.

Obviously - this is only true as long as nothing terrible happens on the share market (which might be just one Twitter message away).

Yes that much is obvious but any ideas on what an OCA cut in half should do to what was before a 'average PE multiple', it's hard to compare current PE with past because the baseline is shifting so far. The current PE of the index is historically high but how much can we discount due to the much lower risk free rate?

[BlackPeter]

Yes that much is obvious but any ideas on what an OCA cut in half should do to what was before a 'average PE multiple', it's hard to compare current PE with past because the baseline is shifting so far. The current PE of the index is historically high but how much can we discount due to the much lower risk free rate?

Well, yes it happens to be a cut in half ... but I don't think this is relevant in this context. And don't forget - OCR can turn negative - how are you then taking your ratios?

If your current PE is say 35 (which means basically 2.9% "interest") and the OCR goes down by 0.5%, than it might be fair to assume that the expectation in companies earnings potential also go down by 0.5% - i.e. 2.4%, which would mean a PE of 42 (all rounded);

Obviously - there are many other uncorrelated factors impacting on PE.
As well - don't forget - at some stage will the "house of cards" crash down. We just don't know, when ...