The world's most expensive sharemarket is in New Zealand

Discussion in 'Sharemarket News & Market Analysis' started by oracle, 18th Jun, 2019.

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  1. oracle

    oracle Well-Known Member

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    Full article behind paywall - here

    Cheers
    Oracle
     
    marty998, Snowball, Anne11 and 2 others like this.
  2. Snowball

    Snowball Well-Known Member

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    Wow what the hell is going on there!

    Any more details?
     
  3. oracle

    oracle Well-Known Member

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    I can only imagine the chase for yield in a low interest rate and inflation environment.

    With the way ASX has moved up since election and recent RBA rate cut I think our market will continue to go up until the market yield is down to between 2.5% - 3% from the current 4%. That would result in between 33% increase (3% yield) and 60% increase (2.5% yield)

    Cheers
    Oracle.
     
  4. marmot

    marmot Well-Known Member

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    Sooner or later the market eventually deals with it, thats why we have stock market crashes.
    Everyhing gets overvalued and as usual no one sees it coming.
    Do franking credits also cause certain companies to have inflated share prices, beyond what they are really worth.
     
  5. PandS

    PandS Well-Known Member

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    it need to push to PE 33 like properties net yield 3%
    10 more PE to go :)