USA price unleaded petrol at pump skyrocketed last week on MonM basis.....after falling for a while......that'll have Fed worried when it comes to inflation
Printable View
USA price unleaded petrol at pump skyrocketed last week on MonM basis.....after falling for a while......that'll have Fed worried when it comes to inflation
I wouldn't think this side of an election .. it may be too much of final nails in the Labour coffin
and it's doubtful if the resident talent pieces could get their act sufficiently together to
work out how it would work without making a complete bulls up of it again in short available time
A change of Government later this year and it might remain on Labour's wish list heading
well into the never never, after most recent trove of bad deeds and incompetence are well forgotten ;)
Lets face it - majority didn't want CGT or a Wealth Tax last time, so pushing that barrow again now
would see Labour venture into no mans land fully equipped with a suicide vest and the red
button firmly placed in the eager unforgiving hands of those who didn't want it last time ..
Ardern recognised the likely risks .. will Hipkins also recognise it, or be too twinkle toed and
want to try his luck by venturing out in amongst the live mines in the field ? ;)
Jeremy Grantham says his predicted big fall still to come …markets didn’t overcorrect on first cycle down
https://www.gmo.com/americas/researc...er_viewpoints/
Why u needed to read so many articles to find this one about new low coming ....U cud have read Bull's many posts here itself to know this or have this opinion ...lol :p
PS : Main reason why markets have not corrected like before or as per many's perception of getting super cheap bargain territory is most thinking earnings will not be impacted that much like earlier such scenarios ...if that assumption breaks down ahead then ONLY u will get another bigger leg down ie leg down of FED over-tightening causing deeper recession then assumed now ...we will know by Oct 2023
here's some positive news lol
SBS Bank bumps year deposit rate up to 6 percent
https://www.newshub.co.nz/home/money...6-percent.html
"It is important to reflect on why the 2022 outcome occurred. For quality growth companies including those in Kingfish, it was largely because valuations had become elevated, against the backdrop of low interest rates. For instance, Mainfreight was trading at 29 times forward earnings, versus its 10 year average of around 20 times. This is now at around 16 times. This dynamic has generally not played out to the same degree for New Zealand’s defensive companies or those with lower growth prospects.
With other companies in a similar situation, Kingfish now looks more attractive on this basis than for quite some time. Plus, history tells us that the ability of companies to grow earnings over time will drive share prices and returns to shareholders."
As per latest KFL newsletter they have tried to explain their underperformance which also shows that growth stocks " Over corrected " while value / dividend stocks did not ....This will reverse with ongoing rotation ....so here we have " Over corrected " part of the market which may not participate in expected new leg down to that extent as dividend and value stocks ....Even if that correction doesn't happen this sector will outperform ...imho
I was going to say good news, historically Jeremy has been 3-4years too early but he has been saying this for about a year now anyway.
Jeremy sounds like an intelligent guy but he may not know how things work these days. Another view on what Jeremy says.
https://www.zerohedge.com/markets/je...ule-out-brutal
Jeremy is, of course, right... if the Fed were to ever allow that to happen. The problem is that Powell would step in long before the S&P dropped anywhere near there and would instruct Blackrock to buy any and all ETFs. Meanwhile, the only brutality has been the collapse in GMO's assets which had been cut by half since 2015 through the end of 2020, as the fund kept doubling down incorrectly on ever more bearish scenarios.
The irony, of course, is that if Grantham is - finally - correct, it will only force Powell to exit from his "Fed put" hibernation and start bidding up risk assets, thus leading to even more pain for bears.
Financial markets and creditism run the world not common sense. Negative interest rates anyone???
7.2 % it is ...so BNZ view seems better ...they also view 50 bips hike next and lower peak ...
PS : Lowest quarterly increase of 1.4% in last 6 qtrs ...so progress is started showing ....now it's a question of time
Surprised it wasn’t more than 7.2% with all the increased seasonal food costs due to bad weather..maybe that’s still to come?
I reckon they will go with 0.75 pt increase as overall inflation still way to high and domestic inflation will prove very sticky imho.
I think I read somewhere the fuel tax and public transports price reductions make about a 0.5% deduction to inflation and that’s about to come back on so inflation gets a +0.5% boost towards next result.
RBNZ will stick to plan i reckon and keep raising