NZSX50 - Good News!

[Hoop]

Expansion on my last post #90.

Amazingly the DOW index index increased exactly the same rate as the NZX50 in 2009

Date....................DOW.................NZX50

01-01-2009...........8772.................2716
31-12-2009..........10428................3230
.........................+18.9%.............+18.9%

On face value it seems the investor would be equally better off.

But..
Not so ...

For the NZ investor investing in the DOW index fund in 2009

example
Buy the DOW index in US$ .... 1st Jan outlay NZ$ 15853....8772 x (1/0.57)
Sell the DOW index in US$.....31st Dec receive NZ$ 14483....10428 x (1/0.72)

Loss............NZ$(1370) -8.6%


For the American investor investing in the NZX50 index fund in 2009

example
Buy the NZX50 index in NZ$ .... 1st Jan outlay US$ 1548....2716 / (1/0.57)
Sell the NZX50 index in NZ$.....31st Dec receive US$ 2325....3230 / (1/0.72)

Profit...........US$777...+50.2%

[777]

No argument with your earlier post Hoop. It is just that for a lot of investors the use of a fund for offshore investment is a convenient way of doing it. I actually use Platinum for some of my exposure. Allowing for FDR and exchange rates they averaged 33+% for 2009 calendar year.

[Dr_Who]

NZSE 50 31/12/08 was 2715.71.
NZSE 50 31/12/09 was 3230.15.

Increase 18.94%

I think it depends what dates you use Doctor. The index was down at 2522.32 at the end of Feb 09 which gives an increase of 28.06% to the 31/12/09. I think the bottom was about then. But you are right there is little point in NZ based funds. A different story off shore though.

My Aussie resource stocks have done exceptionally well. AUD is also strong. I have very little exposure to NZ equities.

[bull....]

Well looks like after last nights action in the US , NZ will break to the downside monday.

The 09 trendline from the lows will be broken on a daily basis = bearish but still hope on a weekly close of maintaining the uptrend.

[ratkin]

Very dissapointed in this so called correction. Have been hunting around for a bargain or two . However all my targets have barely changed price

[bull....]

Yea a massive 5 pt break lol , maybe it wasnt the end of the world like i was thinking

[Hoop]

Very dissapointed in this so called correction. Have been hunting around for a bargain or two . However all my targets have barely changed price

Ratkin..Bull.. expect disappointment.
Asia and the Pacific exchanges have had their 2nd correction...but presently risk a stuttering slow recovery out of that correction.
Now its the rest of the worlds turn....

[biker]

No argument with your earlier post Hoop. It is just that for a lot of investors the use of a fund for offshore investment is a convenient way of doing it. I actually use Platinum for some of my exposure. Allowing for FDR and exchange rates they averaged 33+% for 2009 calendar year.

777, what did they average for the 2008 calendar year?

[777]

Biker they were down about 15% against the markets overall being down about 30%.

This URL gives their performance. In Australian $ obviously.

http://www.platinum.com.au/images/web_all.pdf

[Dr_Who]

I am also hunting for bargains.