NZSX50 - Good News!

[Hoop]

NZX50 has outperformed the S&P500 in the last decade...and both seem to follow a similar trend...
Another plus for the NZX50 is the NZ$/US$ exchange rate ....NZ$1 bought 65USc in Aug 2003.....NZ$1 buys 80USc today 10 years later

[CJ]

CJ ... They say food?

yes. Except in India if a daughter is getting married, in which case, the obvious answer is gold.

[winner69]

Interesting stats posted by nzx last night

Only 8% of directors of listed companies are female

Diversity obviously important

[MAC]

A humble question for the TA's, not being one myself.

With FBU reporting strongly and potentially on the rise once more, is it possible or even probable that the NZ50 index will march to its own beat and shrug off any looming correction in US markets, just as the NZ50 totally shrugged off the 2012 Q4 "fiscal cliff" correction ?

[Hoop]

From a TA point of view....the Wall st indexs have their MA50 's broken, the NZX50 which is testing it's MA50 support line and today seems to be bouncing up off it which is bullish in the short term view....for the longer term view both markets have old bulls in charge and I suspect the Wall st bulls might be dead ...NZX50 has been in sync with Wall St which makes the NZX50 bull suspect although there's no confirmation yet.....a NZX50 rally past 4675 will prove the bull is alive and well..Atm it is 4554 (up 1%) thanks mostly to the huge positive volumes from AIA and FBU who both reported in today.

From an financial view todays NZ sharemarket is an abnormality as Equities in Asia are down again today Europe took a bath last night and there's all sorts of talk going on in the States about corrections....Moosie may think NZ is a safe Haven but it's not. NZ economy is too small and a one primary sector economy....As we speak our NZ$ is down with money outflowing which makes me wonder where the money is coming from to fuel this stockmarket rally today...

[MAC]

That one primary sector economy is soon to be the power generation industry, the NZ50 may never go up or down again !

There's always room for optimism Hoop, plenty of fundamental reasons why NZ may outperform, just look at this tailwind, there seems to be little fear in the VIX or XVI just like during that Q4 2012 fiasco also.

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[Major von Tempsky]

Like most investors here I much prefer to invest in individual stocks for logical fundamental value reasons.

The NZX50 can do what it likes - its irrelevant.

[TimmyTP]

Like most investors here I much prefer to invest in individual stocks for logical fundamental value reasons.

The NZX50 can do what it likes - its irrelevant.

Excellent provocation MvT, I'm sure there is some unwary fish lurking around who will nibble on that!

[Major von Tempsky]

One can't help noticing that since the rise of China and other BRICS and near BRICS countries the NZ sharemarket is only weakly linked if at all to the overnight performance of the Dow Jones. Since the rapid recent weakening of the Australian economy the link to the Australian sharemarket has also noticeably weakened. Our interest rates are different from theirs, our inflation rate is different from theirs. Note how different the performance of FBU and BLD have been.
If I can get something approaching 10% gross dividend yield return into at least the medium term from companies which don't depend on exporting or importing why should I care for or factor in as important your alleged linkages?

[Major von Tempsky]

One obvious reason is because I invest in NZ, not overseas. Given the fierceness of the NZ tax regime on overseas investment and the impossible to anticipate vagaries of the exchange rate, it makes sense just to invest in NZ. And if you further restrict yourself to utility type investments where exports and imports don't matter then the links you speak of don't matter. As long as NZ continues to at least grow slowly in its economy and population then individual countries or even blocs overseas can go to hell in a handcart and NZ is basically undisturbed.
In the 1960s 90% of NZ's exports went to Britain and 90% of its exports were meat, wool and dairy products.
Now we have 3 large customers, China, USA and Australia each taking about 25% of our exports and our exports have diversified somewhat.
China's economy has now turned upwards again after slowing slightly, the US is expanding, and if you read the latest Economist even the EU is expanding again now.