Originally Posted by
xafalcon
IMO the NZ market is more pumped than most others due to the high proportion of yield stocks. So I suggest it has further to fall then other markets whenever the FED raises their benchmark rate. I am 100% out, have been since April. I believe the NZX is currently in the process of transitioning into a bear market, but that is simply my opinion. I see the possibility/probability of the Don poling above Hilary as the next imminent catalyst for the VIX index to rise and share markets to fall, even though the Don may be seen as more pro-business. If he gets elected, although unlikely, I think lots of money would be repatriated from foreign investments including NZX. And once the exodus begins, investors behave like sheep rather than rational individuals. Company fundamentals mean absolutely nothing
I put recent hawkish FED comments down to them increasing market preparation for a rise, not signalling that the increase is about to happen. Very unlikely they would act so close before a Presidential election