any sharemarket followers out there?

[SwissTony]

Hi,

My Mother has some money tied up shares (some sort of managed fund) It has lost around $3-4k in the last year. She's asking me if she would be better taking it out and doing something else with.

She does still have a mortgage, so Im tempted to advise her to put her money towards that. The only thing is that, once she's paid it back to the bank its gone, and she may need some emergency money one day. Shes in her 60s. Even if she does pay this money toward her mortgage , it still won't pay it off.

Does anyone think that the NZ share market will pick up in the next year or two? Im not that hopfeul it will!

[eri]

wrong forum really

but i doubt things will pick up much within a year

people keep taking up any bit of good news

but the fundamental numbers being returned by most stuff

are rubbish

[TheLiberalLeft]

I started a shar-investing fund through a company about 3 years ago, SwissTony. Only really to ensure I'm splitting the assets around a bit. I regularly deposit a small amount (300/mth) to this fund and it actively buys/sells an assortment of NZ and offshore shares. It was very depressing to read the results in my recent statement. Worth less today than the sum of the deposits added over the last 12 months. Fees still taken, of course. I'm really getting pissed off by the whole sham.

[speights boy]

She could become a diy'er
Open an online share acct.
Invest in 4 or 5 solid NZ companies that pay good regular dividends. Companies that earn their revenue from life's necessities.
She then pays no fees, and retains the liquidity necessary to meet contingencies as they arise.
When interest rates rise, she can re consider as whether it's better to reduce debt.

[TheLiberalLeft]

Yeah, did that as well. Telecom and Contact Energy. What a great investment they were <---- sarcasm in the extreme.

[eri]

A$22 billion wiped off oz exchange this morning...

Adding to the woes of A$110 billion wiped from the market last month, the sharemarket closed at its lowest since November, a fearful response to weak economic data from China, Britain and the US in recent days.

''People are more concerned about a return of their capital as opposed to a return on their capital.''

With no end in sight to the debt crisis in Europe, and poor US employment data suggesting growth will continue to be sluggish, investors face months of uncertainty.

''[Given] the way the markets are behaving, there is a big chance that we could very easily see the market still lower in the next month or two, and a low around 3800 is possible,'' Mr Coppleson wrote in a note to clients.

http://www.stuff.co.nz/business/world/7044337/Australian-shares-buckle

[speights boy]

Yeah, did that as well. Telecom and Contact Energy. What a great investment they were <---- sarcasm in the extreme.

Whereas the Bonds in both these companies have done very well.

[Toasty]

Depending on what bank you are with your mum could put the money in an offset account which means that she still has access to it but it has the effect of reducing the mortgage payments.

On the other hand I am a fan of the share market but you have to do your research. I recommend that you browse the forums on http://www.sharetrader.co.nz. There is a lot of good info on here.

Mutual funds are less work but they seem to be run for the benefit of the fund managers.

[SwissTony]

Thanks for all the replies guys. Speights Boy - unfortunatley DIY shares probably wouldn't be Mum''s cup of tea. For others out there, a good idea for sure. Toasty - the idea of paying off the mortgage with the right to withdraw some might work. Cheers!

[Harvey]

Yeah, did that as well. Telecom and Contact Energy. What a great investment they were <---- sarcasm in the extreme.

When looking at share market return you need to be looking at a decent time horizon. I would say 10 years.

Returns over 10 years:
TEL 2.65%pa
CEN 7.59%pa
These both have delivered positive returns even though have been poor performing stocks.

[eri]

probably the average western worlds stocks have performed worse than fixed term deposits

over the last 10 years

i'm completely over the sharemarket

there are far far too many people involved taking their cut

come what may

[eri]

Since the peak in 2000 the real return on global shares is

- 1.71 per cent pa

With all this negativity you would think that shares might be cheap

but unfortunately that doesn't look to be the case.

I have a bet with a local fund manager that the S&P500 will end the year lower than it started and after a bad start I am now in the money.

The Financial Times interpreted this as "no confidence in European growth. Ever again"

There is every prospect of a severe recession worldwide not to mention political and social upheaval in Europe.

Whilst NZ and Australia have lots of scope to reduce interest rates the big issue for Australasia could be a house price crash. NZ and Australian house prices have not corrected anywhere near the extent that other Western countries have.

One only has to look at the current weakness in the share prices of ANZ, Westpac, CBA etc to see that the institutional market is very worried about the prospect of bad debts on residential house loans causing substantial dividend cuts.

So the implications of low long term government interest rates for the man in the street are that we are almost certainly heading for recession and individuals should be carefully considering taking on fixed term debt, starting new businesses or divorcing the wife.

http://www.nzherald.co.nz/small-busi...ectid=10743268

[speights boy]

Still good shares to be found

With the sharemarket in blue-sky territory and chatter in the financial press saying equities here are now fully priced, investors may be tempted to think it is a good time to cash in, or at least to stop buying.

If you were one of the investors who rode the NZX 50 index's 25 per cent bull run last year, it would be tempting to sell up, especially as the momentary return of eurozone jitters has reminded people that the landscape is still highly volatile.

www.stuff.co.nz/business/money/8488797/Still-good-shares-to-be-found

[speights boy]

Banks to reward shareholders

Three of Australia's biggest banks are expected to reward yield-hungry investors by unveiling higher dividends amid predictions that low default rates by borrowers will continue to boost the sector's profits.

[Winston001]

Thanks for the thread bump SB, its an interesting read because it begins in 2012 with valid concerns and disappointment about lack of share fund growth. However since then, both the NZ and international markets have moved up substantially so I hope the posters stayed invested.

If anything, selling at this point might be wise since the NZ market looks fully valued according to commentators. But I can never pick the top or bottom.