I have shares in an English based company that is listed on ASX.:DOC.
According to their comments their business is growing at a great rate as the English health system can not cope.
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Obviously the inflation figure out tomorrow morning must be really really bad if the finance minister is preemptively announcing the continuation of fuel cuts and half price transport until 2023 .....
[QUOTE=moose;966597]Yet we are one of the most highly vaccinated nations in the world. What is going on?
That aside, I see the thread is labelled Black Monday. Still fully invested in the market, however have not been adding to positions and short AIR since just before the capital raise. Might exit that position shortly as it does not look like the share price will fall much further.
Hard to work out the macro's of markets in this environment. Rising inflation has historically meant rising interest rates and consumers spending less the the E part of PE contracting.
This year we have seen the P part decline and the E part remain stable if not rising in a NZ context. Will the real hurt arrive when the E part suffers? Or has that been priced in by the market? Rising interest rates also make those dastardly term deposits relatively more attractive.
Hmmm..yes Winner..I've been on this Planet long enough to be cynical of Governments extending gifts without warning..I smell smoke..I hope it's only an inflationary rise problem and not something else they are trying to divert attention from..I've seen oil drop from a peak of $US130 back in March to $US96 now and yet to see any significant drop at the pumps apart from the tax reduction...Hmmm..
7.3% inflation , fastest in 32 yrs.
of course the person on the street knows this figure is a load of s... its probably really 20%
Not too bad 7.3% And probably peaking. Going to head down to zero now.
Thanks to the universe for paying a big chunk of my mortgage
https://www.stats.govt.nz/news/annua...-32-year-high/
Wow, 7.3 per cent inflation. What a "sh*t show in the f*ck factory" to quote an episode title from the seminal business documentary "Succession".
Applying the rule of 72, if inflation stays at this rate, your cash purchasing power would halve in 10 years.
I wonder what percentage of people actually believe that inflation is only 7.3 per cent. I imagine a very low number. I don't know of anybody personally that does. Could be double 7.3 per cent or more.
On the bright side, I'm thinking that not reinstating the fuel tax means the climate emergency is most likely over now? It must be right because "climate emergency" means urgent action is required immediately to avoid disaster. Not a second to lose! It's an emergency! We're just minutes to midnight!
Anyway If that's the case, it's great news. Well done people. We all made sacrifices in our own way but got there in the end. Stand down! And gentlemen, start your internal combustion engines.
7.3% inflation rate + tax rate 28 % means you have to earn over 9% ROI just to maintain your purchasing power.
of course in reality the inflation rate is higher than 7.3% so more likely you need to be earning double digit returns on your investments to be ahead.
remember if in real terms you lose 10% say due to inflation you need to make over 11% the next yr just to get back to square so the longer inflation stays around applying the example means as the loss gets bigger in real terms the bigger returns needed to just get back to square
So agree with bobdn rule of 72 means most people will be worse of in 10 yrs as far as purchasing power goes even though they might think there 4% div there getting makes them think they havnt lost money
We are seeing the demise of the labour government and the rise of another coalition government. But labour is not entirely to blame for this and the new government can’t fix it in the short term. At the start of this pandemic I was more worried about the inflation that was coming than the virus.