HGH - Heartland Group Holdings

[LaserEyeKiwi]

There are plenty of people that have been saying for months that much of the non-tradable local inflation is being driven by essential services (council rates, insurance, utility bills) unmoved by interest rate increases, or worse are actually going up because of interest rate increases.

But if RBNZ cant impact those factors to reduce inflation, they are going to have to go even harder on the rest of the economy that they can impact.

I myself think there is another option (let inflation ride at 3-4% for a year or two), but unfortunately is not an option for them while they are directed to keep inflation below 3%.

Wouldn’t be surprised if current government is considering changing that target band - because at the current RBNZ track the economic pain might continue into the 2026 election cycle.

[SailorRob]

One persons debt is another persons asset.

For every punter feeling the pain of rates another is feeling the glee.

The issue is new credit creation.

[Balance]

Kudos to "Balance" who appears to have precisely call the bottom - bravo Sir/Madam! Unfortunately being not such a savvy person am still somewhat underwater but onwards and upwards!

Thanks for taking the time to share that info Balance. And earlier post re getting back into HGH.
Appreciated.

Flippers (those who took part in the CR and underwrite for a quick gain) are still there so am expecting sp of HGH to do more work around the $1.01 +/- level before the strong base is built to move the sp higher.

[Rawz]

One persons debt is another persons asset.

For every punter feeling the pain of rates another is feeling the glee.

The issue is new credit creation.

Most depositors are typically retired and dont spend much. Those with debt are typically the main drivers of consumption. 25-55 age bracket.

Agree, credit creation is the ultimate driver of growth

[jonu]

Most depositors are typically retired and dont spend much. Those with debt are typically the main drivers of consumption. 25-55 age bracket.

Agree, credit creation is the ultimate driver of growth

Without a corresponding growth in productivity it will be inflationary. More credit chasing the same number of goods and services. That's not real growth, but that has been NZ's problem for many years.

[SailorRob]

Without a corresponding growth in productivity it will be inflationary. More credit chasing the same number of goods and services. That's not real growth, but that has been NZ's problem for many years.

100% correct.

[mike2020]

There are plenty of people that have been saying for months that much of the non-tradable local inflation is being driven by essential services (council rates, insurance, utility bills) unmoved by interest rate increases, or worse are actually going up because of interest rate increases.

But if RBNZ cant impact those factors to reduce inflation, they are going to have to go even harder on the rest of the economy that they can impact.

I myself think there is another option (let inflation ride at 3-4% for a year or two), but unfortunately is not an option for them while they are directed to keep inflation below 3%.

Wouldn’t be surprised if current government is considering changing that target band - because at the current RBNZ track the economic pain might continue into the 2026 election cycle.

I think your onto something. Listening to the news in the car back to back items on increased rates and the fixed costs like insurance followed by a note about inflation and interest rate news. I mean do the math. They said some insurance average up 40%. What happens next? I can tell you. More people stop buying insurance. Then what?

The rhetoric on tv news is along the lines of this government hates the poor. I hope like hell they have a rabbit to pull out of the hat well before the next election or we are going to be cooked again by the freaking idiots who got us in this mess.

[X-men]

NZ is stuffed.... thanks to the previous labour government

[percy]

NZ is stuffed.... thanks to the previous labour government

Think you are right.
Was at Pak'nSave today.Going by the over flowing trollies at the check outs,and the large number filling up their vehicles at Pak'nSave's petrol pumps,it looks as though people think NZ is running out of food and petrol.The huge number of vehicles on the road confirmed most people were out for one last drive.
"The end is nigh"............................................. .............lol.

[LaserEyeKiwi]

NZ is stuffed.... thanks to the previous labour government

To be fair - almost every country in the developed world is going through the same upheavals caused by the same global issues of the last few years, regardless of what flavor of government they had. Thankfully NZ is in a much better state in terms of government debt.

Despite its polarization, the US is actually faring the best in terms of economic growth, mostly due to its unique mortgage market where 90%+ of homeowners are locked in at record low interest rates on 30 year fixed terms. So consumers there are still spending like crazy. Meanwhile their house building sector is still chugging along fine, as their house builders simply “buy down” the interest rates to new house buyers to attractive low rates (and simply building that cost into the margins on the purchase price).

If heartland really wanted to shake up things they should start offering 20-30 year fixed term mortgages. I dont think they will do that anytime soon while they absorb Challenger, but maybe an initiative for the future.