Intuitively it doesn’t seem to follow that whole milk powder prices and Heartland fortunes go hand in hand.
A fund manager I knew had a economic model he called the 3C’s .....inputs were climate, commodity prices and currency......essentially quanitfying how green the grass is and what producers were getting for their stuff and it’s impact on the NZ economy.
Greener the grass and higher the milk (and other products) prices the better the economy doing .....growing GDP .....and Jeff keeps reminding us Heartland’s fortunes are tied to the economy
So there is some rational thinking behind the relationship between dairy prices and Heartlands share price.
So keep on eye on things like SMD (soil moisture deficit), commodity prices and the NZD ... do some multiple regression stuff .....amazing how many things have a strong correlation to the 3C’s. ....like in a past life it was a good input into how much paint NZers might use in the future.
Cool eh
”When investors are euphoric, they are incapable of recognising euphoria itself “
Wow GDT up 15%! Surely see HGH push through $2 now.
Huge boost to the economy at a great time when we need it (with tourism in the doldrums).
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
Intuitively it doesn’t seem to follow that whole milk powder prices and Heartland fortunes go hand in hand.
A fund manager I knew had a economic model he called the 3C’s .....inputs were climate, commodity prices and currency......essentially quanitfying how green the grass is and what producers were getting for their stuff and it’s impact on the NZ economy.
Greener the grass and higher the milk (and other products) prices the better the economy doing .....growing GDP .....and Jeff keeps reminding us Heartland’s fortunes are tied to the economy
So there is some rational thinking behind the relationship between dairy prices and Heartlands share price.
So keep on eye on things like SMD (soil moisture deficit), commodity prices and the NZD ... do some multiple regression stuff .....amazing how many things have a strong correlation to the 3C’s. ....like in a past life it was a good input into how much paint NZers might use in the future.
Cool eh
Out of interest where was Heartland trading during those 2 very low milk price years 2014-2016? I am a total sceptic about any connection between the two.
Out of interest where was Heartland trading during those 2 very low milk price years 2014-2016? I am a total sceptic about any connection between the two.
Always remember the time on a clock that has stopped working is right twice a day.
There was outrage in America in the 19th century when it was shown in a fast growing city that the number of prostitutes was rising at the same rate as priests...
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