NZX50 reaction to election results

[snapiti]

Hi everyone I thought it was a good idea to start a thread ahead of the general election.
For me the possibility of having a Labour, Green, Moari party coalition government is somewhat frightening as the combination of a lack of depth in cabinet and ideologies that just don't stack up will I suspect be very bad for the share market
I suspect under the above coalition there is a very good chance of a capital gains tax and or wealth tax to be implemented

[BlackPeter]

Hi everyone I thought it was a good idea to start a thread ahead of the general election.
For me the possibility of having a Labour, Green, Moari party coalition government is somewhat frightening as the combination of a lack of depth in cabinet and ideologies that just don't stack up will I suspect be very bad for the share market
I suspect under the above coalition there is a very good chance of a capital gains tax and or wealth tax to be implemented

You are right - there are a number of horror scenarios to consider when we go into the next election:

Having a government of xenophobes and racists implementing the rule of one race over the other is only one potential (and clearly highly undesirable) outcome.

On the other hand we might end up with a bunch of gun lovers, conspiracy theorists and religious deluded people following some self appointed bishop running the show, which would be highly undesirable as well - and lets face it, Nationals talent pool does not seem to be that deep either with non decisive Luxon apparently the best they can muster.

I guess, it took him already ages to clarify his stance on working with the Maori party in its current shape and form (yes, maybe, no, perhaps, ....), i.e. how long will it need to make a decision when something not obvious is on his plate to decide?

Nationals candidate selection process is as well still a worry - this the people we want to run our next parliament?

Whatever it will be - the common ground with the golden middle in it seems to get smaller and smaller ... interesting times to come for sure

It appears while Labour works hard to lose this election while National tries hard to keep them in power.

This could be fun to watch, if it wouldn't be us who need to face the consequences and pay the bills afterwards ...

[Left Field]

I would rather keep political posts off the NZX50 investing thread.... thanks.

[BlackPeter]

I would rather keep political posts off the NZX50 investing thread.... thanks.

Fair enough, maybe I was a bit too generic - take your point - though it is a grey zone.

There is however no doubt that the outcome of the next election might have a significant impact on many NZX50 - companies.

Where would you like to discuss the impact of e.g. a proposed wealth tax on residential property and REITS? Where would you like to discuss e.g. the significant impact the ongoing stop and go of our immigration policies or the ups and down of political shackles thrown on our tourism sector? Where would you like to discuss the impact of climate policies (or the lack thereof) on our companies and political decisions of how to share the load? There are clearly huge ramifications for many businesses depending on political decisions to come.

I can understand why people don't want general political discussion on company specific threads (unless they are relevant for this specific company) .... but I think if there is a political thread popping up under NZX and you are not interested in the political ramifications on your investments ... why don't you just ignore the thread?

[snapiti]

I would rather keep political posts off the NZX50 investing thread.... thanks.

I disagree entirely and believe the up coming election may turn out to be extremely relevant to NZX 50 investors given there is a good chance the country will be
in the hands of already proven incompetence, then add minority idealism it is somewhat naive to think it will not have a major effect on NZX50 investors

[Administrator]

I think this can stay on this board so long as you are discussing specific policies/plausible ideas and how they could impact specific companies or sectors on the NZX. If it gets off track I will move it to general news.

[Waltzing]

when was the last time something got listed on the NZX that did not turn out to be a bag of stale chips... or something similar...

oh right that was "Your Food Order"  or "Puke bag"..

your almost telling us its a DOOMSDAY event ... Winner() will have to come and remind everyone it will all turn out ok in the end?

Like always... else snapiti (what does that stand for anyone?,  You know like Hang man "Baby on Board") could be right....

https://www.youtube.com/watch?v=7qh3fSCT0a4

[snapiti]

not a doomsday event, more a slow train wreck for NZX 50 investors me thinks, my prediction is the NZX50 losses 20% in the 12 months following a Labour,Greens, Moari party coalition due to poor policies put in place based on ideologies that have side effects   

[snapiti]

anyone given much thought to the Greens election pitch on taxes.
Very bad for the wealthy, very bad for all assets held in a trust and very bad for the share market as they want corporates tax to go to 33% 

[Poet]

anyone given much thought to the Greens election pitch on taxes.
Very bad for the wealthy, very bad for all assets held in a trust and very bad for the share market as they want corporates tax to go to 33% 

Yes, will be very very bad if they get in. Although I guess we should turn our minds to how to take advantage if they do seem likely to get in. Sharemarket retreat, capital flight?

I think they have pretty much shot themselves and the labour party in the face with this tax plan. Not because a large number of voters wouldn't like to see the rich get eaten but because they (the watermelons) have proposed a 1.5% tax on all trust assets without a threshold. Lots of Ma's and Pa's with their houses and rental properties in trust will not like those punitive taxes applying to them. The 45% rate above $180K won't be popular either.

[Basil]

https://www.nzherald.co.nz/business/opinion-sir-ian-taylor-an-open-letter-to-chloe-swarbrick-on-wealth-tax/ODLKEE7T7BDYRL23HSJ3FE6U4Y/ Paywalled.
Sir Ian Taylor opines on this.  Well worth a read and the comments section as well.

[Shareguy]

Yes, will be very very bad if they get in. Although I guess we should turn our minds to how to take advantage if they do seem likely to get in. Sharemarket retreat, capital flight?

I think they have pretty much shot themselves and the labour party in the face with this tax plan. Not because a large number of voters wouldn't like to see the rich get eaten but because they (the watermelons) have proposed a 1.5% tax on all trust assets without a threshold. Lots of Ma's and Pa's with their houses and rental properties in trust will not like those punitive taxes applying to them. The 45% rate above $180K won't be popular either.

There is still a lot of people that this will appeal too.  Will be interesting to see what Labour will do.

[snapiti]

Yes, will be very very bad if they get in. Although I guess we should turn our minds to how to take advantage if they do seem likely to get in. Sharemarket retreat, capital flight?

I think they have pretty much shot themselves and the labour party in the face with this tax plan. Not because a large number of voters wouldn't like to see the rich get eaten but because they (the watermelons) have proposed a 1.5% tax on all trust assets without a threshold. Lots of Ma's and Pa's with their houses and rental properties in trust will not like those punitive taxes applying to them. The 45% rate above $180K won't be popular either.

It's a number game via sending the right message to the right voters.
Certainly will be putting on hold my share market investment plans till this is all sorted.
I think National are shooting themselves in the foot at the moment....I don't understand why national are openly touting the farming vote when they have it anyway, that's not sending the right message to the right voters at all......quite the opposite I would have thought

[snapiti]

https://www.nzherald.co.nz/business/opinion-sir-ian-taylor-an-open-letter-to-chloe-swarbrick-on-wealth-tax/ODLKEE7T7BDYRL23HSJ3FE6U4Y/ Paywalled.
Sir Ian Taylor opines on this.  Well worth a read and the comments section as well.

behind paywall Mr Basil

[Basil]

behind paywall Mr Basil

I know mate but copyright and all that.