Have BaaBaa and myself got through to you? Do you understand now that we're in a bear market and why?
Do you understand the difference between a gross index and a capital one?
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Dont get too bogged down by this talk that NZX50G is fool's paradise ...its not ...If u want to track investor returns who invested in NZX50G index via a ETF ie NZG ...traded on NZX ...it is real index fund and follows Gross index and its returns are real ...
https://www.nzx.com/instruments/
https://smartshares.co.nz/types-of-f...and-shares/nzg
Study and U will know better ...There is another index called Portfolio Index ...its called NZX50P ...which FNZ follows ...its a capped index ie max weightage is not as per market cap as in NZX50G but capped at 5% which is more suitable for layman or index investments in NZ
Why Gross index was specially formed for NZ as its a defensive market with very high dividend yield unlike USA or other markets ...thus they wanted to incorporate dividend returns also into the index to truly reflect returns from equity investments in NZ
It is impossible to achieve the return of the NZ50G for obvious reasons.
I understand the products you are talking about obviously.
Study why the index was formed and you'll know better.
Spend a good few hours on it. Study the man that created it, get your hands on documentation from the process at the time... Takes a lot of effort.
What you say is true but there is more to it.
Well, where is the $1.35 people talked about?
I took a small holding at $1.80 via Jarden when they last raised capital, and have in the past few days now averaged down to just under $1.48 with a more substantial holding.
The market will reassess once/if the Challenger acquisition has concluded. A good share to have included in your 2024 competition picks in my view given the potential for upside, thou I confess I didn't do that myself which is a contradiction.
Anyway, a happy new year to everyone and my best wishes for good investing/trading in 2024.
The NZ investment/pension/tax environment has meant households favour real estate investment. So, many growth companies end up being bought out by foreign companies or listing on foreign stock exchanges to access capital. So that leaves a small stock exchange with a high proportion of defensive capitalisation.
From an article on interest.co.nz on bank deposits https://www.interest.co.nz/personal-...its-held-banks
'And we should all understand, this is not real insurance. No private insurer anywhere in the world will provide this coverage. This is a taxpayer benefit for savers. And savers tend to be well healed and politically connected. It is a middle-class welfare benefit'.
Why will no insurer in the world provide this coverage?
Don't worry though, Percy has done lots of research as he did on Channel Infrastructure. Haven't seen him on the 2023 returns thread though??
Actually this scheme would benefit a broader range of savers, than just being another subsidy benefit for the wealthy.
The major rich family benefits come in the form of a lack of a general CGT, and home owner tax exemptions. Those who do not get capital gains, or for whom real estate ownership is inappropriate or too expensive, will often have bank accounts and term deposits.
looking like it wants to go lower. probably nim's getting crushed