Forum Archive Index - June 2000

["hugh webber" <hugh.webber@clear.net.nz>]

I don't think its just NZ mate, the perverse logic applies to Australia too
but possibly not to Japan. Nasdaq/Dow Jones take a dive; NZSE and 
All Ords collapse in a heap. Nasdaq/Dow Jones recover, NZSE and All
Ords (Ok, to a lesser extent) remain in a heap.
Look at the Australian techs for example, Nasdaq collapsed to about 3000
from 5000 and Australian techs like Solution6 and Sausage practically
disappear off the face of the map. Nasdaq recovers to 3818 (can't remember
exact figure) and Australian techs continue to fall about in a heap. Ditto
NZ techs no doubt. Apparently there's some outfit called Eisa in Oz that's
struck a bit of cash flow bother. As far as I know its totally unconnected
to
Solution6 and Sausage which have Telstra behind them but the waves of
hysteria are so strong that investors are totally undisciminating. I
suppose 
that means (in NZ terms) that if Wilson Neill struck trouble then Advantage
must be in a bad way as well.  
Same thing happened after 1987.
However in Japan I note that Jap techs are recovering in imitation of US
techs.
What does one do? Assume that Australia and NZ are made up of different 
elements and compounds and that the Newtonian and Einsteinian laws of
physics don't apply here? Subject NZ and Australian financial institutions
to tests for exotic mental diseases like schizophrenia? Slink off overseas
with tail between legs like my old mate RIL?
Oh, well I suppose one just has to be patient and wait for gravity to
re-establish
itself in the southern hemisphere as well as the northern.

cheers,
Hugh

----------
> From: Mark Hubbard <mhubbard@es.co.nz>
> To: sharechat@sharechat.co.nz
> Subject: Re: [sharechat] Nasdaq etc
> Date: Saturday, 3 June 2000 12:03
> 
> ----- Original Message -----
> From: Phil Eriksen <phil@acepay.co.nz>
> To: <sharechat@sharechat.co.nz>
> Sent: 3 June 2000 11:51 AM
> Subject: [sharechat] Nasdaq etc
> 
> 
> > NEW YORK (CBS.MW) -- Fresh signs that the U.S. economy is
> >                  slowing was a welcome event on Wall Street, helping
the
> > Nasdaq score
> >                  its best weekly gain ever.
> >
> > I've seen this sort of thing in a number of different places.  Having
> > justified high stock prices because of strong growth, it seems the new
> > justification is lower growth.  I can only live in hope that US
> > investors decide to apply Nasdaq multiples on the NZ stockmarket due to
> > the excellent prospects for sub-standard growth in the economy.
> 
> 
> :))
> 
> Nice try Phil, but not quite a comparable situation. Firstly, the US
economy
> is going through, historically, its longest period of sustained growth
ever,
> and this 'slow down' is simply to knock off the head of the inflationary
> pressures that are building because of this - as for NZ, well, no such
past
> growth I'm afraid.  Secondly, the US don't have the political risk that
NZ
> now has with its communist, whoops did I say that, rather Left (actually,
> hard left) government that seems determined to bite off the hand that
feeds
> it, despite the latest cosmetic affectations of Cullen.
> 
> This is all IMHO of course.
> 
> 
>
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