The US debt ceiling crisis may be a minor issue, but wary markets are observing. A default threat could ripple through the financial system, affecting even NZ. Locally, last week's final 0.25% OCR rise hasn't sparked property market cheers. Full inflation control must occur before normalcy returns. However, investors should stay hopeful, given our established playbook for such events.
Thanks Ryan for asking the question we responded to tonight - have a question, then AMA here: https://www.surveymonkey.com/r/CZ3LM5N
...
https://www.youtube.com/watch?v=ufmpO_Zq5tY
The following is a short segment from an upcoming episode - please subscribe and select notification bell if you want to know when the full release comes out
...
https://www.youtube.com/watch?v=HKW8aCt26Q0
Jarrod Kerr joins me in this podcast episode 'Keep on Truckin'
I've been listening the Grateful Dead recently - such a good band. Their songs always have so much ambiguous meaning behind them that can often be applied to range of topics
"Truckin', got my chips cashed in
Keep truckin', like the do-dah man
Together, more or less in line
Just keep truckin' on"
As investors, we should be retaining a cash balance at times - to weather a storm, take advantage of opportunities, or just staying the course.
"Sometimes the light's all shinin' on me
Other times, I can barely see
Lately, it occurs to me
What a long, strange trip it's been"
We'll never know how long and how strange this trip has been, until it's over, and we've past through the latest tunnel we're heading through.
Some businesses and some long term trends, will die - some will thrive. This potpourri of fear and greed emotions that abound will often cloud our judgement when it comes to making investment decisions.
"Sittin' and starin' out of the hotel window"
Strong leadership emerges over time from those who have gone through tough times before - it's way too soon to praise, or to judge, our leadership through this pandemic. Sitting and staring outside the window does amazing things for us - it's a pre-requisite condition for creativity. Solutions to problems (innovation) is born during these times.
In this episode, Jarrod Kerr (Chief Economist at KiwiBank) and I explore the following topics:
Business confidence is down, and it's still dropping. Much of the pain is yet to come.
Is the damage caused by the lockdown (economic, social, mental heath) worth it?
www.nzeverydayinvestor.com
What are some 'silver lining' moments? Specifically what trends and what businesses are poised for success?
The best response to the current pandemic is fiscal, not monetary - what does this mean?
This episode is an essential one. The Covid-19 pandemic will act as a catalyst to bring about significant change in the new world - we will never invest the same beyond this point...and that's not a bad thing. Just because what we're heading into is 'unknown', it doesn't have to be scary.
I'll leave you with this quote from Jerry Garcia:
"Stuff that's hidden and murky and ambiguous is scary because you don't know what it does." - Jerry Garcia (The Grateful Dead)
...
https://www.youtube.com/watch?v=3Gz4xxjgA7s
If you're keen to build new wealth in the new world we're heading into, I think we should be talking more about the rules of the game?
Michael Reddell has spent over 30 years doing economic analysis and policy advice at various places including our very own Reserve Bank here in NZ, where he ran a number of areas, including Head of Financial Markets, he was responsible for monetary policy implementation, foreign reserves management, and the analysis of financial system risks.
I’m wondering if separation between the RBNZ and our government, is only the starting point for anyone curious about what's going on with the people behind the green curtain. What if the RBNZ is effectively just a branch of a form of unelected government that’s engaged in a type of currency war hidden in plain sight which flies straight over most of our heads?
_______________________
Hey! Like what you've heard today?
I'm on a mission to help improve levels of wealth for everyday Kiwi's. After all, it's good to build wealth...right?
Here's some ways you can get alongside the NZ Everyday Investor - no pressure, but I'd appreciate any help you could offer:
Use the following referral/affiliate links
Hatch: https://app.hatchinvest.nz/share/uqhcj8y8. $10 for you, and $10 for me, if you sign up and deposit $100NZD.
Sharesies: https://sharesies.com/r/RRPR6X. $10 for you, and $10 for me, if you sign up for the first time with them.
Easy Crypto: easycrypto.com/nz?ref=19599. One of NZ's most trusted places to buy/sell your digital assets.
Share this Spotify link with your friends: https://open.spotify.com/show/0MA6EGur387YT1ENKIffMx?si=b1C28fV7TmWib8qXnZLDoA
...
https://www.youtube.com/watch?v=LU1XV7CfLoI
Paul Manning, co-founder of Helius Therapeutics joined Darcy Ungaro and the mysterious one they call ‘Pumpkin’ recently on the podcast NZ Everyday Investor.
Paul heads up a business currently operating ahead of legislation - that’s tricky indeed but also smart. If Paul succeeds at changing the image problem that cannabis has in NZ then Helius will be an established business and a known brand when legislation inevitably changes.
The market is YUGE at an estimated $1.3b NZD annually now (based on current known recreational users). These users aren’t your stereotypical potheads though, they’re the people that you meet, while you’re walking down the street - normal everyday people who use marijuana to treat things like pain, anxiety, eating disorders, epilepsy and insomnia.
What are the opportunities for the everyday investor? Should we rush out and start investing in growing operations or is there wisdom in sitting back to watch the environment settle first?
Aligning your values with your investment strategy is smart, and it feels right. ESG investing is the latest buzz phrase - investments that have good environment, social and governance practices. Is investing in cannabis a good move for you? Well, that kind of depends on your view of this topic. 89% of New Zealanders are now in favour of cannabis law reform so on that basis I’d suggest that more believe this is a good industry to be involved in compared to say, alcohol or oil.
Visit www.nzeverdayinvestor.com to subscribe to the podcast.
...
https://www.youtube.com/watch?v=lWZZzOYzDCI
120 - your age = % of your portfolio that should be allocated towards shares. This is one of many 'rules of thumb' you may occasionally come across. The 60/40 portfolio is another one - 60% in shares, 40% in equities.
The question Rupert and I are chatting through tonight is this: Have we witnessed the death of the 60/40 portfolio?
As usual - this isn't financial advice - heck, it's not even close - but I do hope it get's you thinking!
...
https://www.youtube.com/watch?v=mixw4kTtLUE
Inflation hitting new highs, Central Banks around the world still showing resolve to hike rates in light of a slowing worldwide economy. What's going on, and is there really anything to be concerned with?
...
https://www.youtube.com/watch?v=oS6AWiDK7wE
When the alarm bells are ringing, it's important that we take time to calmly assess the situation before making rash financial decisions that have long term effects ⏲️
Click on the link in our bio to learn more about KiwiSaver and the 8th wonder of the world - compounding returns ?
#KiwiSaver #personalfinance #compounding #returns
...
https://www.youtube.com/watch?v=G2WX-JHk8hw