Forum Archive Index - February 2003

[Robin Benson <rob@hammerheadmedia.co.uk>]

My thanks also due to Phaedrus and Snoopy for recent discussion and analysis.

Interesting comments Richard ... the exchange rate factor really adds some excitement to the investment equation doesn't it :O)

GPG, with assets both in and outwith NZ, is an interesting case, especially as Phaedrus's charts show no trend break in the UK price but quite a clear break in the NZ price. One wonders how much price movement in the past has reflected the weighting that investors in GPG have placed on the respective currency factors. The NZ$ has appreciated (over the whole period) against Sterling by about 20% since early 2002. There was a GPG price spike (albeit a small one) during the short period that the NZ$-Sterling rate was falling. However, what with FFS, and TWR of late, there have been more than enough factors to add to the GPG mix to make it somewhat perplexing. 

Robin

(BTW, you seem to equate "Every NZer with NZ assets" with the "NZ rich", which I don't quite understand).

On Tuesday, Feb 25, 2003, at 12:50 Europe/London, Richard Hooper wrote:

> Thxs Snoopy /Phaedrus
> GPG is one of my majoj stocks which is concerning me at the moment. 
> Long term investors like me still worry if stocks go down..and..down..and down.
> What I must remember and to think long and hard when the NZ$ turns is ....that even through my portfolio is tending down into the negative (-3%) last 3 months....internationally wise I am richer not poorer .....so no panic......as long as the NZ$ remains as it is or up.
> OK  Most people seem to be uneasy about the NZ$ rise and it is a factor to lessen to GNP rate ( growth rate) however look at it this way ....Every NZer with NZ assets has increased his/her wealth by some 20% internationally within the last few months by just living in NZ.  The NZ rich just got richer the NZ poor just got poorer..( don't tell the Labour party that one