Showing posts with label investment return. Show all posts
Showing posts with label investment return. Show all posts

Wednesday, September 4, 2019

It's all about the Return

Image result for investment returns in a inflation cartoons

It's all about the return.

After real estate, for better or for worse, the NO 2 investment is the stockmarket.

But what we have here is diff - I changed what I was going to talk about after a well earned nap.

We have interest rates at an ALL TIME LOW.

When you change something so fundamental - forget the reason why they "had" to change - to the structure of the economy you are going to get distortions.

In this case your going to get assets - and having a share is an asset - priced way ahead of where they actually should be.

But that's normal now.

So what I'm saying is.

Until this all comes crashing down - who knows it could be right now - then rightly or wrongly. And I would say wrongly. Your just going to get the housing market - sorry to Kirsty Merriman for this one - and the sharemarket will follow. Until the last 10th of a percentage point I fear is going to be wrung out of those.

So your Meridian Energy your Contact Energy everything with a return will get hammered up and up.

When do I get out? If your me I wouldn't be too concerned.

But what goes up eventually settles down to somewhere more manageable.

I leave the rest for up to you to decide.

c Share Investor 2019