Forum Archive Index - March 2000

[Michael Sprott <MSPROTT@clear.co.nz>]

Ritchie,

There is no way you would ever such a suggestion would ever make it through
parliament. It makes far too much sense!

Anyway, that would mean that all us fabulously wealthy families earning over
$60,000 a year may actually be able to afford a lifestyle akin to the lower
quartile in Asia.

ms

> -----Original Message-----
> From: ritchie marr [SMTP:ritchie_marr@hotmail.com]
> Sent: Friday, March 17, 2000 12:49 PM
> To:   sharechat@sharechat.co.nz
> Subject:      Re: [sharechat] NZ super scheme?
> 
> As I understood it, a large part of the reason that the Australian market
> is 
> doing so well is because of their introduction of compulsory
> superanuation, 
> a while back. The massive amount of money generated from contributions had
> 
> to be put somewhere and what better place than into growth and value 
> companies in their own market. The advantage is that this is not like 
> overseas investors who bring in one big lump sum, but rather a continuous 
> regular flow of substantial proportions. Prices will reach an equilibrium
> at 
> some point, but the nature of the money going into these stocks is so long
> 
> term that you won't see a mass exodus of funds going out when appropriate 
> corrections on different markets occur, simply because they are in for the
> 
> long haul. Yet when corrections do occur, there is the vast sums of money 
> resulting from regular contributions pouring in to the market to buy even 
> more of these now undervalued stocks, so the corrections are halted and 
> reversed very quickly.
> 
> Now if OUR government were to address the compulsory superanuation issue 
> again, with obviously a more appealing approach than the last attempt...( 
> such as was done with the insurance situation; having a lot better range
> of 
> choices ), then the NZ market would not only find itself again, but with
> the 
> increase of locally influenced interest, overseas investors would come
> back 
> into our market, as it would have to be in that situation one of the
> fastest 
> growing markets by value in the world, due to how low we are now.
> Just a thought!
> Ritchie
> 
> 
> 
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