Black Monday

[alokdhir]

Yeh well i cant time the market and luckily I have fresh capital to invest each money when i get my paycheck.

DCA will have to be my friend during these times and ill see you all in a few months or years when this blows over holding many more shares in my favorite companies.

Fully agree with that ...thats the right way to invest ...at all times regularly ...U will surely do well .

[Biscuit]

.....PE ratios are at historical extremes ......

What is your data for that? Not saying you are wrong, just struggling to find good data to evaluate that. I look at MSCI NZ index and it screams that NZ has exceptionally high PE ratios. But that is based on just 6 companies and dominated by high PE companies like FPH, AIA that are not really reflective of most of the companies listed in NZ - one is priced for its exceptional growth and the other is priced for its assets. What data is available to make a more meaningful comparison of valuations? Same with NZX50, its become dominated by growth companies, so historical comparisons are difficult.

Having said that, I do agree that valuations seem relatively high and that with the emergence of inflation and likely higher interest rates, valuations will likely come down, at least in the short/medium term.

[JohnnyTheHorse]

What is your data for that? Not saying you are wrong, just struggling to find good data to evaluate that. I look at MSCI NZ index and it screams that NZ has exceptionally high PE ratios. But that is based on just 6 companies and dominated by high PE companies like FPH, AIA that are not really reflective of most of the companies listed in NZ - one is priced for its exceptional growth and the other is priced for its assets. What data is available to make a more meaningful comparison of valuations? Same with NZX50, its become dominated by growth companies, so historical comparisons are difficult.

Having said that, I do agree that valuations seem relatively high and that with the emergence of inflation and likely higher interest rates, valuations will likely come down, at least in the short/medium term.

https://www.multpl.com/shiller-pe

I will also reiterate the 2nd order consequence of the potential of decreasing earnings.

[alokdhir]

Looks like NZX website under attack again ...its not updating for me ...

Ok now ...so all good

[BlackPeter]

your forgetting in a bear market all stocks go down

There are always the BEAR ETF's ... and shorting ;

Not sure, though whether it is already this time of the cycle ...

[alokdhir]

NZ inflation is below expectations ..at 5.9 % its below expected 6+ % ...so some help for our market to stop going down .

[percy]

NEVER HEARD OF THIS THEORY ON ECONOMICS BEFORE. HAVE YOU??





Sanjay Thakrar, CEO at Euro Exim Bank Ltd, got economists thinking when he said:

“A cyclist is a disaster for a country's economy.

He does not buy a car and does not take a car loan.

Does not buy car insurance.

Does not buy fuel.

Does not send his car for servicing and repairs.

Does not use paid parking.

Does not become obese.

Yes ... and well, damn it! ... healthy people are not needed for an economy.

They do not buy drugs.

They do not go to hospitals and doctors.

They add nothing to a country's GDP.

On the contrary, every new McDonald’s outlet creates at least 30 jobs:

10 cardiologists,

10 dentists,

10 weight-loss experts, apart from people working in McDonald’s outlets.

So, choose wisely: A bicycle or a Mcdonald's?

Walkers are even worse. Those people do not even buy a bicycle!

[bull....]

NZ inflation is below expectations ..at 5.9 % its below expected 6+ % ...so some help for our market to stop going down .

no you need to buy everything you can , if you can before prices double by the end of the year

[alokdhir]

no you need to buy everything you can , if you can before prices double by the end of the year

Stocks also ...maybe they will also double ...lol

[Swala]

Classic - love it!

NEVER HEARD OF THIS THEORY ON ECONOMICS BEFORE. HAVE YOU??





Sanjay Thakrar, CEO at Euro Exim Bank Ltd, got economists thinking when he said:

“A cyclist is a disaster for a country's economy.

He does not buy a car and does not take a car loan.

Does not buy car insurance.

Does not buy fuel.

Does not send his car for servicing and repairs.

Does not use paid parking.

Does not become obese.

Yes ... and well, damn it! ... healthy people are not needed for an economy.

They do not buy drugs.

They do not go to hospitals and doctors.

They add nothing to a country's GDP.

On the contrary, every new McDonald’s outlet creates at least 30 jobs:

10 cardiologists,

10 dentists,

10 weight-loss experts, apart from people working in McDonald’s outlets.

So, choose wisely: A bicycle or a Mcdonald's?

Walkers are even worse. Those people do not even buy a bicycle!