Don’t think Orr will giveaway anything, it’ll be usual hawkish tone until they get inflation within target range.
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Don’t think Orr will giveaway anything, it’ll be usual hawkish tone until they get inflation within target range.
Thats how one gets hard landings ...but its better for Governors to err on side of caution then prudence ...Did he start raising rates when green shoots of inflation were all over ...no he waited and let the genie out fully before even thought of doing anything ...similarly he will surely wait till unemployment has reached 5% plus and he gets his surety that enough pain caused to kill inflation as well as many businesses ....but its always be sure then not ...as he is not trying to win any elections but trying to leave a legacy :cool:
I expected rate cut by the end of this year. Now I reasonably expect it to happen in 2025.One of my mortgages is expiring in September 2024. I have a plan B for it now. I thought why not I find investment which are going to benefit from high rates. Accordingly, I parked my money in cash rich companies.
https://www.forbes.com/advisor/au/pe...ate-australia/
June 27: August Rate Rise 'On the Cards'
High interest rates are good for certain types of businesses. Companies with large cash investments and with positive cash flow will benefit. Their return on investment will increase. Companies with high debt will have a tough time. Naturally, their cost of doing business will go up. Even during high interest environment there are opportunities in the stock market.
RetailWatch report June sales in NZ were 8% down on June last year
Of note -
Department stores down 21%
Clothing/Footwear down 16%
Furniture/Appliances/Homeware down 12%
Online and Instore down about the same ...but Online Domestic down more than Online Offshore
Dear W69
Did you identify companies which can perform well while reducing debt load in their books? It's always good to buy when they are out of favour. Currently, I have kept few stocks on my radar. Also it's good to find out next hot commodities and take positions before others come as droves. IMO coming sell-0ff in assets will get opportunities for intelligent investors. For my portfolio Interst rates is irrelevant. High Interst rates is very good for my portfolio. Thanks.
Out and about yesterday and there’s sales everywhere, retail in every store I followed the wife into and new cars with big discounts in brands not known for big doscounts. Typically after dropping 6 figure on a new one in May haha but even then they were doing reasonable deals. I think the economy stats will go a lot further south yet
The best car deals are the third third third at zero percent interest. Match the cashflow with depreciation expense, GST back etc. I negotiate that every time. If they don't do that then no deal.
Economy. The hurt is real, that's for sure. But I'm not going to have sympathy for cars salesman doing it tough. They have had a very good run through the last economic cycle.