The Boom is back.
If the share market is to believed than maybe it is .
The share market is a barometer for the mood of the market. Because if its liquidity the share market reflects what investors think the future hold in the months ahead.
When the share market thrives the property market follows. Of course the “lag factor” kicks in because of the relative slowness of property as compared to shares.
All the signals are flashing and indicate that market sentiment has turned. Provided we have no further shocks we are heading into interesting times.
Caution as market rebounds to new high
The New Zealand share market has officially regained all the ground it lost during the global financial crisis, rocketing to a new high last seen in May 2008 – but analysts remain cautious.
The NZX50 index rose 1.05 per cent, or 37.65 points, to 3.614.97. Within the index, 32 stocks rose and 12 fell. TradeMe led gainers and Heartland New Zealand fell.
While the benchmark index came within a hairs breadth of a four year high, First NZ Capital head of institutional equities James Lee was wary of pinning it to underlying economic recovery.
“I think that’s more a reflection of cash flow in the market. What you’ve seen here is due to record low interest rates in New Zealand – and globally really – people moving to equity markets, and seeking out some higher return.”