There were several notes of interest in the interview. The biggest one, IMO, was the extent to which they rely on countries they export to including the US and China. More trouble in either country could impede New Zealand's recovery. The country is small enough that it has to import much of what it needs which means it will likely always have a large current account deficit.
The country has enacted various stimulus ideas most prominently, per English's comments, have been tax cuts and infrastructure spending. As New Zealand has far fewer moving parts it could be much easier to get the infrastructure projects off the ground.
One thing I found interesting is that he said the NZ dollar tends to get lumped into a basket with the Aussie, Canadian dollar, the rand and even Brazil but he said that New Zealand is likely to keep rates low for a longer period of time than Australia which is already hinting about raising rates.I used to own NZ Telecom as an across the board holding and while I expect to invest in NZ again at some point it will probably not be with NZT. There are quite a few interesting companies in NZ but they could be difficult to access. The list of ADRs (the link doesn't capture the search results but you can screen by country) shows a lot of the companies I've heard of and mentioned before but if you plug the symbols into Yahoo finance they show no volume (I looked about half a dozen and went 0-fer). The quote pages on the Bank of NY Mellon ADR site shows some quote information but I'm not sure if it is accurate.
I would think that an individual could get a trade done if they were so inclined but I think it would be difficult to buy in any real size and selling a large block would likely be even more difficult.
The picture is from Ocean Beach in the Whangarei Headlands, we visited there in 2005 and would love to go visit again.
6 comments:
I like EPP as it gets me diversification in Asia and a little bit of New Zealand. But I am not aware of any pure New Zealand investments. You can get Malasia, hong Kong, etc
Maybe not ideal in your mind but heck of a lot better than a a decade ago
Sorry, O/T--Index Universe has a helpful post up about the possible implications of investing in the reconstituted DBA and DBC etfs. The post seems pretty well-reasoned, but I wonder if you'd weigh in with your thoughts please. I seem to recall that you've either used or discussed DBA and DBC in the past.
Thanks very much, Roger.
i own DBA. the changes make it more like the Rogers ETN ticker RJA which I argued had better diverisification but I did not want to deal with the ETN wrpper so I am please with the changes.
All DBA needs is greasy wool. Joke.
Roger,
Your post made me think about emerging markets like EPP, VWO, and EEM.
I expected EEM and VWO to be similar, but turnover and dividend yield seem very different. I have not checked performance, but I am really interested in performance over 20 years so their short lives may not be indicative.
Which do you prefer? VWO seems better for an IRA and EEM for a taxable account if I wanted to own both. I think these are excellent core holdings in the right percentage and could add an india or brazil or ... if I liked specific countries a little more.
I would be very curious about your thoughts.
EPP is not really an emerging market fund.
broad based products like EEM or VWO have never been my favorite way in.
EEM vs. VWO
EEM is a representative index with maybe 350 to 450 stocks and is designed for liquidity and trading.
VWO trys to replicate the entire index and has 750+ stocks.
If you compare the size of the ETFs you'll notice EEM has a *lot* more trading volume.
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