Wide range of shares best bet - Mary Holm
Friday 16 July 2004
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
By The Landlord
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.
Read More - Opens in a new window
Commenting is closed
Property News
More than fair “wear and tear”
Proving tenant liability for damage has long been a major worry for landlords but a recent Tenancy Tribunal shows that it can be done.
Commercial
Demand challenges for commercial sector
Vacancy rates in the commercial property sector are set to increase as changing economic conditions dampen demand.
Mortgages
LVR loosening likely - ANZ
LVR restrictions were never meant to be a permanent feature of New Zealand’s housing market and ANZ economists argue that some further relaxing of them could soon be on the cards.
