Forum Archive Index - March 2000

[RIL <RIL99_99@yahoo.co.uk>]

As an expatriate even I am stunned at the performance of the NZ
stockmarket. I knew things were bad there but I didn't think that bad.
NZ industrial stocks are being abandoned and this spells disaster for
NZ. 

>From the articles I have read through the net and various conversations
with friends foreign investors are bailing out and the local retail
investors are as well (what few of them remain).

The rub is that no longer can an industrial company easily raise money
to invest; create jobs etc. This is a dire position.

I will go out on a limb here and predict that within 5 years the NZ
stock exchange will no longer exist in its current form. The good
companies will list on the ASX and a reject market will run in NZ.

I say this because when the tech market crashes (as it must), the last
of the retail investors will exit the market. Most of the people hyping
tech stocks on this site and on the market have not been through a crash
and from their posts most of them do not have a clue on company
valuations.

I was emailed a great article from the the NBR last week by Gareth
Morgan which sums it up well. The lemming retail investors are coming
out in droves to buy IT stocks and most of those stocks are rubbish. But
fish like these do not rise from the water very often and every
experienced public company wide boy and his mother is cashing in.

To the few retail investors who get my meaning and are not blinded by
greed, get out and stay out.

You will otherwise get burned.

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