House Prices

Wide range of shares best bet - Mary Holm

Q. I found an article in the Herald this week by Ellen Read disturbing.

She says New Zealand stock is getting overvalued and "the capital NZSX-all index is at 908.5 - its highest since October 1997 and just below the all-time high of 921 just before the 1987 crash".

I only have New Zealand dividend-yield stock in case the market crashes, as I have been told I will

Friday, July 16th 2004

still get my dividend whatever happens and, eventually, they will rise in value again.

I think I would still find it hard not to panic if my Contact Energy shares were suddenly worth 50 cents each.

What do you think of the high position of the market at the moment? Are we in danger of a crash?

A. I don't know. I could ring lots of market analysts and report back what they said. But history shows that nobody is all that good at predicting share market movements.

Having said that, crashes tend to follow periods of extraordinary growth. And we haven't had that.

The fact that the index is close to its 1987 peak is nothing to worry about. If anything, we should worry that it didn't get there years ago. Most of the world's big share markets topped their 1987 peaks within a year or two of the crash.

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Heartland Bank - Online 6.69
SBS FirstHome Combo 6.74
Wairarapa Building Society 6.95
Unity 6.99
Co-operative Bank - First Home Special 7.04
ICBC 7.05
China Construction Bank 7.09
BNZ - Classic 7.24
ASB Bank 7.24
ANZ Special 7.24
TSB Special 7.24
Unity First Home Buyer special 6.45
Heartland Bank - Online 6.45
China Construction Bank 6.75
TSB Special 6.75
ICBC 6.75
ANZ Special 6.79
ASB Bank 6.79
AIA - Go Home Loans 6.79
Kiwibank Special 6.79
BNZ - Classic 6.79
Unity 6.79
Westpac Special 6.39
China Construction Bank 6.40
ICBC 6.49
SBS Bank Special 6.55
Kiwibank Special 6.55
BNZ - Classic 6.55
Co-operative Bank - Owner Occ 6.55
ASB Bank 6.55
AIA - Go Home Loans 6.55
TSB Special 6.59
Kainga Ora 6.99
SBS FirstHome Combo 6.19
AIA - Back My Build 6.19
ANZ Blueprint to Build 7.39
Credit Union Auckland 7.70
ICBC 7.85
Heartland Bank - Online 7.99
Pepper Money Essential 8.29
Co-operative Bank - Owner Occ 8.40
Co-operative Bank - Standard 8.40
First Credit Union Standard 8.50
Kiwibank 8.50

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