Your mates from the bowling club being market trend setters.?
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Lower dollar helping today still decent gap to NTA but closing at least.
$Kiwi looks very vulnerable, just like the economy and to be frank both look dangerously like falling down a dark rathole with a depth of who knows ? Great to have some money in offshore assets.
……."Bring back Bill."...………..
A safe pair of hands wherein business could plan with a reasonable degree of certainty.
At issue now is with over 100 different working groups looking at policy framework change, how does business plan 3-5 years down the track now ? For example, how much will water cost per cubic meter for that proposed new irrigation project, will Iwi get a royalty ?, will the greens allow the drawdown from rivers ? is that new multi million dollar irrigation project viable or some future potential white elephant ?
The tax working group is another example. Nobody has any idea at this stage what the policy framework will look like down the track. What will the corporate tax rate be, will there be capital gains tax, a land tax, an inheritance tax, some form of wealth transfer tax. Will GST go up ?
There's simply too much uncertainty about which direction this Govt will lurch in next and its impact on business. In this environment I expect a lot of people in business will simply take a wait and see approach and put a freeze on major capex. This is the reason why small business is at its most pessimistic since the depth of the GFC.
I would argue its not a protest vote, its a vote of no confidence and how do we plan in this environment and if small and medium business stop investing in new projects and stop expanding because its too hard then we're inevitably headed for a serious slowdown.
I plan to allocate more investments overseas and have a degree of urgency around that.
Beagle I hear what you’re saying but surveys are just that, surveys. Real flows are looking very healthy