Thanks Hoop. I definitely won't be taking any of the Contact offer anyway.
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Any thoughts on how much of the sell off is by overseas holders?
One should keep in mind that the pullback of the NZX50C is not representative of the entire NZX market. The declines are very heavily attributed to MEL and CEN (which are unnatural drops), plus ATM and FPH.
Ultimately the NZX is likely to follow the SP500, which is at all time highs and just broken bullish from a bull flag. In my view this is a dip worth buying on selected shares (and no MEL, CEN and ATM are not those selected shares... yet).
Nikkei is zooming along. ASX with their stale "old hat" companies are doing ok even with profit downgrades.
NZX's place is between those two I think.
Can someone explain the link between NZX50 and US markets? US dominated by massive tech companies NZX by utilities, US powered by massive stimulus NZ by not so bad economic data and some stimulus.
I may be a bit thick. Why are these two so closely linked (excepting recent break)? They seem very different animals to me.
Sharemarkets will always tend to move in tandem in the short term - principally due to overall investment sentiment & international flow of funds.
However, there is the 'beta' factor at play too. Basically, NZX is described as a low beta market - it does not synch nearly as much to the US market as say, a high beta market like ASX which synch much more closely.
Yep, been a sea of red for me this week, except for Almonds; who'd have thought my long suffering SHV shares would be rising from the dead, here's to a favourable La Nina.