Another record day for NZX, up to 6570 now...
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Another record day for NZX, up to 6570 now...
I wonder what would happen to share prices if we started to see deflation. I imagine people would want to hold cash, for obvious reasons. But how would deflation effect the actual value of companies and their ability to earn and pay dividends. I suppose it would reduce the value of them as deflation suggests that the price of their goods are going down, therefore profits decrease? Do any companies increase in value during deflationary behaviour? Perhaps companies holding lots of cash or ones whose suppliers are competing heavily causing costs to drop more than the price of the company's goods / services? Maybe monopolistic companies would flourish as the value of cash increases, but their prices don't go down as they're a monopoly?
http://www.interest.co.nz/news/80572...me-now-low-075
Could explain to some extent why NZ Stocks are performing so strongly....
Who watched the BIG Short .....worldwide Property Bubble ready to pop once again
https://www.youtube.com/watch?v=3hG4X5iTK8M
Hope none of you are holders of Bespoke Tranche Opportunities:eek2::eek2:
the bears must have gone into hibernation on this thread or left the house 300 pts dow or 2% away from last high not much room left for the bears to say its still a down trend
Very quiet indeed...
With "solid" data out of the states overnight/this morning, combines with the Dow turning positive for the year, I think we could see the NZX 50 close over 6600 today
and all because of that ''black gold--Texas Tea''...that ''just another commodity'' ..Fed Ex and Boeing ,helped along with cheap oil,and the market in general helped along by more expensive oil--the typical dichotomy. -Janet has helped keep the $US from going up with no change in interest rates.(no one in their right mind would have done that)--To be able to raise interest rates gradually like they had hoped would mean that the experiment might be working and they can get back to normalcy --no chance at this stage.(the high dollar killed that)
But it looks like the bullet has been dodged for now--Yes Bull ,the bears are getting sleepy.....party on people! (until the next rate increase and higher dollar and etc etc.)