NZSX50 - Good News!

[Mista_Trix]

... There are some awful misalignments out there ...

Do you mean misalignment from value and current share price??

[Hoop]

Do you mean misalignment from value and current share price??

Annualised PE Ratio is very high for this stage of the secular Bear cycle (13 years old)...Although it is still at the high side of fair value only because the inflation rate is in that sweet spot zone at 1.58%. Thats only one cog in the overall system however ...Strangely (that effect for the media and the laypeople), not many points mention share price value..probably because the market values everything as fairly valued according to its "now" system environment that it lives in....So the points mentioned are those things that slowly effects change within the system environment that the Equity Market lives in ..... Equity Market Cycle reversals are due to slow systemic changes, much of it undramatic so goes undetected (unless you look for it)*** .....the ultimate tipping point trigger could be a very minor insignificant event...(Butterfly wings...eh?) That's the reason why most investors don't realise the exact time of the bull/bear reversal believing the market fall to be another buy in the dip Bull Market Correction and the media is still bullish encouraging the market is healthy...so with that denial that's nothing has changed (no dramatic event) the money trap is set.

*** the reason for these types of forum posts

Many points cover Correlations and disconnects typical of the last phase of Equity Bull Markets throughout history ..such as the current Copper/Equity disconnect...High margin debt..High IPO activity...fiscal tightening..lower inflation environment showing signs of ending..Also sentiment indicators...and behavioural attitudes e.g Investors harshly criticising anyone who bearish....The absence of perma-bear fund managers...stupid,lack of commonsense activity doesn't seem stupid or risky anymore as they are now highly profitable activities ...Hmmm about 20 more..I'll try to find my list..I've got one for both top of bull and top of bull cycles on my computer somewhere...