Originally Posted by
value_investor
Agreed, interesting to see how aggressive interest rate rises are or if they will gradually increase overtime. The aggressive bond buying has tapered. The next interest rate decision is in a weeks time, and we could easily see a 50 point hike at this stage. Swap rates are already pricing in a few hikes, banks have already passed on mortgage rate increases, offset by a smaller increase in term deposits.
The wheels are turning in the other direction in the nzx, looks as though valuations are coming back down without the flood of cheap money in the local markets and I'm sure a lot of investors are cashing out sizeable returns made in the past few years. If you have a long time horizon in my opinion, there will be opportunities to buy and hold and make some sizeable long term returns. However, if you're buying right now in the hopes of selling in the next 12 months at a profit, it might not be the best strategy at this point.