Remember when the NZD went below US$0.40 at the turn of the century ..... that caused some chaos .... and I think NZ was in recession then ..... bought on by 2 consecutive droughts
Bugger - wonder when we will our next big drought .... haven't factored that in yet
The Country's currency reflects the Country's economic health/wealth...eh Winner
NZX50 closed 2019 out at 11491 ….say pre-covid baseline
So today at 11852 it’s only up 3% ….and that’s with 2 years of dividends reinvested
Anybody now what NZX50Capital Index was back then …..2 years of going backwards I suppose
The smart money at end 2019 should have been stuffed into residential land and not into businesses employing people paying taxable salaries and earning taxable income?
Big swings in moods of people is making everything swing ...after lockdowns ...people went crazy spending money ...now its going other way round ...IMHO this new pessimism is going to make the big fears of INFLATION go away sooner then many thinking . Rates will not rise so much ...they dont need to ...people dont have money and security of mind to keep spending .
Already retail is getting hammered as masses have closed their wallets ...Euphoria is over ...now the pendulum will swing other side
Dont write off markets and productive assets ...its not doom and gloom ahead ...Surprise surprise will happen when most realise inflation will be easy to tame when people dont have money and confidence to chase prices up
Consumerism which led to inflation will vanish with this bust of confidence and vanishing money from wallets
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Originally Posted by winner69
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