“The Intelligent Investor is one who sells to optimists and buys from pessimists.” Benjamin Graham NZ Property Update House price inflation is rampant in NZ with +22% y.o.y. for the period ending February 2021. This sort of growth increases the risk of a major disruption to the wider NZ economy when the $1.5 trillion property bubble finally bursts. How could we address this rising risk? Enter Prime Minister Jacinda Ardern! The biggest news in the past month for NZ investors has to be the changes to property investing announced as
If it looks like a bubble and smells like a bubble……. It is very likely that US share markets are now in “bubble” territory. Bubble means shares are trading at historically expensive valuations. At present, many longer-term valuation measures show that S&P500 shares are trading at valuations higher than levels reached in 2000. The record high valuations in 2000 were the precursor to the “Tech Wreck” which saw the S&P500 fall by 44.70% over the next 2.1 years. S&P500 valuations stretched Source: Bloomberg, Yale/Robert Shiller, John Hussmann, John Mauldin It
