The question is what do investors do in the face of impending doom when the Labour Party stumbles across the line to win the 2017 election.
Well they've started it already.
They have stopped buying Auckland International Airport Ltd [AIA.NZX] its moving backwards with a DIV coming,
Auckland Airport growth is bound to stall under a Labour Govt.
Labour's stated aim is to at least halve immigration and I think it will go completely the other way within 2 years - people will not want to stay.
The other thing Labour is going to introduce, a $25 dollar new tax for travelers to this country is going to have a major impact on tourists.
This will clearly impact further on Auckland Airport, it clearly has already.
Uncertainty certainly plays a part in it, there's no doubt about that but reality plays a big part as well and Labour's focus of their extra spending is on the unproductive parts of the economy. That has been the way of the Labour Govt's from year one.
But you don't get economic growth from putting taxpayer money into things like "higher wages for everyone" it is simply a blight on the taxpayer and business as a whole.
You've got to be focused on what you as an individual can bring to the table rather than Labour's view that whats on the table is mine and that extending the table through extra taxes and more Govt borrowing is the way to go.
Its not.
You've got to wonder about those companies that have got a high component of transport costs, Like Freightways and Fletcher Building.
These companies have come off recent highs and they are nervous about what will happen when Labour gets into power.
Every company on the NZX is effected by the probable change of Govt.
I'm not worried about my investments. I will take the time to look at each company in the Share Investor Portfolio and buy more when they get cheap enough.
That's the thing with long-term investing in shares and changes in Govt. You make your serious money in times of gloom and (like we will be heading to under a Labour Govt) and make even more in times of boom (like we are just coming off now - under National).
Either way I'm not disturbed.
AIA @ Share Investor
Auckland Airport: Look Before You Leap
Auckland Airport: Its a Buy
AIA: To Buy Now Or Not To ?
Share Investor Q & A: Auckland Airport's Simon Moutter
Freightways @ Share Investor
Share Investor's Total Returns: Freightways Ltd
Share Price Alert: Freightways Ltd 3
Share Price Alert: Freightways Ltd 2
Fletcher Building @ Share Investor
Share Price Alert: Fletcher Building Ltd 4
Share Price Alert: Fletcher Building Ltd 3
Share Price Alert: Fletcher Building Ltd 2
c Share Investor 2017
