Originally Posted by
winner69
I gathered that you were a non-believer
Intuitively it doesn’t seem to follow that whole milk powder prices and Heartland fortunes go hand in hand.
A fund manager I knew had a economic model he called the 3C’s .....inputs were climate, commodity prices and currency......essentially quanitfying how green the grass is and what producers were getting for their stuff and it’s impact on the NZ economy.
Greener the grass and higher the milk (and other products) prices the better the economy doing .....growing GDP .....and Jeff keeps reminding us Heartland’s fortunes are tied to the economy
So there is some rational thinking behind the relationship between dairy prices and Heartlands share price.
So keep on eye on things like SMD (soil moisture deficit), commodity prices and the NZD ... do some multiple regression stuff .....amazing how many things have a strong correlation to the 3C’s. ....like in a past life it was a good input into how much paint NZers might use in the future.
Cool eh