Forum Archive Index - March 2000

["nick" <acummin@es.co.nz>]

        I have been suprised that even many on this forum

have begun to buy most of their stocks from markets overseas,

many seem to have given up on the NZ market.

      To me this makes little sense and in some ways looks like herd

mentality which we all know is not the way to make money in stocks.

             The media etc are really talking down  the NZ market this year,

prices are now looking very very attractive so why not buy?. 

          Its irrational yet tempting to look at the better performing markets and

 and want to jump on the bandwagon , However if you think rationally and

avoid the hype you will realise several things.

 

   1. Many overseas markets are now fully priced and by entering now

      the golden times may of been missed

   2. At this moment NZ has some outstanding buys based on P.E etc

   3. Nz stocks cannot really go lower (unless worldwide crash) as the companies

      will become subject to takeover activity.

   4.   There is a trend for NZ stocks to list on overseas markets, this continuing

trend will expose our stocks to more buying and prices will rise,

    5. Most importantly FUNDAMENTALS DO COUNT  , the bubble internet stock

bonanza will only last so long, what really counts is bottom line. Earnings per

share etc are far more relevent than hype, and the Nz market must be one of the least

hyped and under priced in the world, but times will change and we will one day have our

place in the sun

 

  nick