Interest rates are so low that saving money is pointless.
So the money is diverted into shares and property instead.
The same will happen here.
Catweasel laugh. Does it the model its theory with sharp pencil and ruler? So a interest rate been the low for many the year in a Japan, why a Nikkei so the low in mouzealot theory?
And a why isn't master and expert advising mouse to load up on a NZ equity and mouse house?
So a interest rate been the low for many the year in a Japan
Japan had a massive boom, bigger than anything ever experienced in NZ or Australia. Even after that boom collapsed, it still left property prices in Japan's major cities at a much higher level than prices in Australia/NZ cities, and stocks over-valued too. Plus Japan's population is in decline.
Quote:
why a Nikkei so the low in mouzealot theory?
By what measure do you determine the Nikkei is 'low'?
On a P/E basis, the Nikkei is one of the most overvalued stock markets in the world.
Japan had a massive boom, bigger than anything ever experienced in NZ or Australia. Even after that boom collapsed, it still left property prices in Japan's major cities at a much higher level than prices in Australia/NZ cities, and stocks over-valued too. Plus Japan's population is in decline.
By what measure do you determine the Nikkei is 'low'?
On a P/E basis, the Nikkei is one of the most overvalued stock markets in the world.
O the K, so interest a rate not affect post-bubble economy. Fair the enough. Does it also mean that a low the interest rate in a U.S. will also be a fail if it be a fact that it experience a bubble?
Yes, a Catweasels heavily in a JPY/AUD and a JPY/NZD, and a less the so in a Japan industrials and even bank the stock, courtesy of darling Mrs. Catweasels.
In a world of a risk the management, a cash-rich companies with massive the industrial a capacity is sexy to a some.
But of a course, a PE ratio for a Nikkei been the seen much higher (up to a 32) when do a adjust for a inflate.
But what of a P/B value that often the mock among a Anglo-Saxon world? What does mouzealot recognize of it?
The US bubble wasn't as big as the Japan bubble, plus they have a growing population, so I think the US will recover.
Is your view that the Nikkei is 'low' based on P/B ratios?
Catweasel a laugh. In terms of a leverage, yes a Nikkei at a "low." In a terms of a price level, it also at a "low." In terms of a delever, it a "advanced."
Electricity is cheaper in NZ. Much cheaper. This leaves Kiwis with enough money to bid up the price of land. It is also cheaper to ship a used car from Japan to NZ than from NZ to AUS. Which again, leaves Kiwis with more money to spend on property.
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