Originally posted by Chris W
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How international market forces affect NZ property
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Originally posted by Jeffa View Post
I'll be in Turkey this September/October for month, it will be interesting to spend some time with the locals to get an idea how they have lived through hyperinflation.
It will be a very educational holiday but they seem to be surviving somehow, Im fascinated to find out what individuals did with their worthless Turkish lira, and have a cheap holiday of course.
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Originally posted by Jeffa View Post
Turkish mortgage rates are 23%, yet cpi is a whopping 53%
It will be a very educational holiday but they seem to be surviving somehow, Im fascinated to find out what individuals did with their worthless Turkish lira, and have a cheap holiday of course.
1) how are those residents who can only earn Turkish Lira and without offshore help (e.g relatives offshore), surviving? e.g teachers in local government funded schools, nurses in local government funded hospitals, rubbish collectors, other employees in local government funded services, pensioners / retirees who rely on government pension benefits, etc
2) what are the various ways that the above residents can obtain foreign currency such as US dollars, Euro, etc, locally?
Have talked to some people who were affected by high inflation in Argentina and Zimbabwe - quite interesting how local residents adapted to changing economic conditions.
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Nasdaq composite index which consists of High growth and mega cap companies like Apple, Microsoft, Amazon, Tesla etc is on track to finish it's best quarter since the scamdemic in 2020
Why?
the market is pricing in a pivot from the Fed in the second half of this year
How's this effect New Zealand house prices?
Lower Fed fund rate means lower swap rates, or higher offers on real estate (you can basically borrow more) NZ housing market always follows the share market ~ 9 month or so lag
Why?
The share market is the economy.
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Originally posted by Frezzinghot View Post
3 month yields are pricing in a Fed rate cut.
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Originally posted by Jeffa View Post
Watch at 16:20 he's saying the next 90 days , like Jeffa, Gammons following the bond market.
3 month yields are pricing in a Fed rate cut.
"DEBT BECOMES IRRELEVANT WITH INFLATION".
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Originally posted by Jeffa View PostNasdaq composite index which consists of High growth and mega cap companies like Apple, Microsoft, Amazon, Tesla etc is on track to finish it's best quarter since the scamdemic in 2020
Why?
the market is pricing in a pivot from the Fed in the second half of this year
How's this effect New Zealand house prices?
Lower Fed fund rate means lower swap rates, or higher offers on real estate (you can basically borrow more) NZ housing market always follows the share market ~ 9 month or so lag
Why?
The share market is the economy.
Invest a 100k into a company expecting(hoping)someone to buy it back off you 3 to 5 times it's original purchase price.
This is why the Nasdaq crashed in 2022 -30% on increasing interest rates, this is also why it just had its best quarter since 2020 and one of the best in over a decade, because bond market is pricing rate cuts.
Lower interest rates increase margin profitability on these high growth speculative tech companies
Lower interest rates increase borrowing power and higher growth to our speculative Real estate market...its how I retired in my 40s.
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Originally posted by Frezzinghot View PostYes I found that information outstanding. When they pivot how long is it before out rates start to lower? Is it slowly or under urgency as the banks profits decline?
Like a dodgey house auction in South Auckland..Last edited by Jeffa; 02-04-2023, 09:05 AM.
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Today FM was never going to survive the upcoming recession and high interest rate environment.
It's no different to these mega cap companies Apple , Facebook, Tesla etc shedding 10s of thousands of workers, advertiser's need to save money during recession and the market including these mainstream and social media companies have priced in the down turn to their revenues
Tova and co are victims of the Fed and our central bank tightening, deal with it...
The good news is, stronger better companies will rise from the ashes to replace weak mainstream media drivel.
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