Investing Q&A with Sharesies co-founder and interest.co.nz journalist

Sharesies' Leighton Roberts and interest.co.nz's Jenée Tibshraeny discuss investment strategies, how global markets are placed to absorb shocks now versus previous periods of uncertainty, helicopter money and more

28th Feb 20, 11:58am by Jenée Tibshraeny

Interest.co.nz journalist, Jenée Tibshraeny, joined Sharesies co-founder, Leighton Roberts, to answer questions from Sharesies users about the market volatility caused by coronavirus.

They discussed investment strategies, compared and contrasted how global markets are placed to absorb shocks now versus during previous periods of uncertainty, and considered the usefulness of fiscal and monetary stimulus.

Sharesies is an investment platform, which gives retail investors direct access to the NZX, as well as various investment funds.

The webinar was recorded on Thursday and is targeted at a general audience.

The views shared shouldn't be treated as financial advice.

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6 Comments

by Boatman | 28th Feb 20, 12:20pm 1582845654

WOW ........... Has anyone seen the SPX500 GRAPH in the WSJ re-repoted by MARKET WATCH and Bloombergs about 15 minutes ago .

Its starting to look like a rout .......... they used an expression I have never seen before , not just oversold , but "EXTREME OVERSOLD '

I firmly believe markets usually mostly get it right , so this is not looking good at all .

Luckily I am mostly in cash and Bonds , and have been in cash for a long 3 years now , as I felt the PE ratios were totally out of whack , so I cashed in way back ( too soon )

by linklater01 | 2nd Mar 20, 2:09pm 1583111386

Boatman,

If you sold all your NZ shares some 3 years ago, then the market(NZX 50) would have to fall to around 7000 to justify that. That would represent a drop of almost 40% from its current level. I doubt if that will happen, though I think we may well move into bear market territory.

Over 2 years ago, I began to take some profits from my best performing shares and I have gradually moved to having 20% of my total portfolio(shares and rental property) in cash. I have no idea when the market will bottom out, or indeed where, but I intend to start gradually buying back these holdings at some point. I will certainly miss some of the initial rise, but the yields will still be very attractive.

by Gareth Vaughan | 28th Feb 20, 12:27pm 1582846066

From Bloomberg;

Chinese banks are taking extraordinary measures to avoid recognizing bad loans, seeking to shield themselves and cash-strapped borrowers from the economic fallout of the coronavirus outbreak.

Some of the measures, which include rolling over loans to companies at risk of missing payment deadlines and relaxing guidelines on how to categorize overdue debt, have the explicit approval of regulators in Beijing. Some lenders are also refraining from reporting delinquencies to the country’s centralized credit-scoring system and allowing borrowers to skip interest payments for as long as six months, according to people familiar with the matter, who asked not to be named discussing internal decisions.

https://www.bloomberg.com/news/articles/2020-02-27/china-makes-bad-loans-disappear-as-virus-pummels-banking-system

by JB | 28th Feb 20, 3:16pm 1582856160

Before we start reacting to these sorts of meaningless comments by stock pickers who live off activity - take a look at a 10 years graph of the S&P 500 or NZ50 - the small changes we are seeing are simply noise - or static.

Read Buffett's latest Letter to Shareholders - he won't be selling.

Good companies that were purchased at fair prices with a strong economic franchise - such as Chorus, Port of Taurange, Vector, Auckland Airport will reman good investments and almost certainly likely to be more valuable in 10 years than they are today - while providing very good dividend yields going forward.

As Buffett has stated - once you have an IQ over 70 - Investing is very easy - just learn to suppress the animal urge to " do something "

by Keen Observer | 29th Feb 20, 1:16am 1582892190

That's the problem, how do you know many of the NZ herds even pass that 70? - specially that the past 150yrs this country predominantly raised a FASD & recreational drugs generation to bring the average into lower level. The same saying cannot be said for NZ mate!

by linklater01 | 2nd Mar 20, 2:13pm 1583111616

K O,

I can only assume from your ramblings that you too over-indulge in recreational drugs and that has severely diminished your ability to express your views in even passable English.