52 leave /48 stay
The decision caused the pound to drop to the lowest in 30 years
52 leave /48 stay
Yes, this ‘Brexit’ is a very interesting situation and relevant for all of us, even on the other side of the world!
BNZ’s Chief Economist Tony Alexander has written piece on what it means for NZ here: Brexit, and what it means for New Zealanders
According to Tony the drop in the pound is as a result of the markets being surprised by the ‘Leave’ vote (they’d predicted/planned on ‘Remain’) so the markets are readjusting, and also as a result of uncertainty as to what this means for the UK economy.
Will be something to keep an eye on, for sure!
I read the blogs. Moodys dropped the credit rating of the UK to a negative economonic outlook.
I expect the other rating agencies followed suit. Moodys and the other rating agencies also rated incorrectly the mortgage backed securities that were part of the crash of 2008. They lost a lot of credibility when that happened.
Mortgages from subprimers and other loans were bundled together with safe investments like life insurance and given tripple A ratings which means they are less likely to go into default. As we know the opposite happened when it was unveiled that the investments were “junk”. The international rating agencies defended the claims with stating that their ratings are only an opinion. But investors are still guided by their ratings.
The world is made up of financial markets. Investors don’t like investing in things that are high risk so the ratings of the credit agencies are important. I wonder if the credit scores of individuals that Veda give us, actually are considered by other investors or the credit raters like Moody’s etc, when banks onsell its mortgages and loans to other countries.
The Brexit shone the light on the fact that people now know about the EU and also what the markets really think about the UK leaving the EU. Basically it thinks it was such a bad move that tremendously ugly things are going to happen to the UK economy. So many people were against staying in the EU for reasons to do with Freedom. The EU are self governing with their own parliament and laws which means they cannot be voted out nor their rules and systems scrutinised or questioned. The british prime minister has to ensure the country complies with the rules of the EU regardless of whether or not it is in the best interest of the UK people.
NZ is not part of the EU In theory because our government places more importance of allowing our country to be a true democracy.
Regarding Kiwisaver. I have now been in it for six months. The highest growth fund. I already lost 42% of the investment due to fees at the end of March. I have looked into it today and see that over the whole time I have only actually made $5.00. If I were to withdraw it more fees would need to be paid, so I’ve made nothing. Because I am in hardship I’m trying to get out of it. I have put in an application to the bank (not BNZ) and they will not accept the information I provided on the form which I had a court registrar sign to make it an official declaration. They also will not accept the rent that comes out of my bank account as being a true and correct representation of the rent I am actually paying. I’m going to have to have my landlord actually write a certified (not ordinary) letter declaring the actual amount of rent I am paying because the bank doesn’t believe what I put on the form.
Is it any wonder that the markets are so volitile.
Kiwisaver is a long term investment - we’re talking years, not months. The high growth funds are always more exposed to market volatility so you should expect to see declines (especially as the markets have been volatile for much of the time that you’ve been invested). If you leave the scheme now you’ll lock in your losses, even though it sounds like there was only a small amount invested in the first place. Obviously it’s up to you, but maybe you could consider taking a contribution holiday (assuming you’re working) rather than leaving the scheme overall.
Hi, no I’m self employed. I’ve stopped the payments. I understand what you are saying. I’m sure you mean well.
I had tried to invest in a non-kiwisaver mutual fund. Again I put my money where I was told. When the investment went bad people said I put money in the wrong time. For 30 years I’ve been throwing my money to banks and so called investors when I should have been investing in me. I’m in substantial debt today because I listened to people who I thought knew better. I was wrong. In 15 years I will reach retirement age. I’m done with investing. If I can’t get the money out of the Kiwisaver through hardship, I’ll deem it as unrecoverable. There is $605.00 in it. $600.00 of it is my own money. Its taken 30 years to wake up. I won’t make the same mistakes again. That was my only asset. I have read that the OA is trying to find a way for Kiwisaver to be used for creditor repayments because there is millions of dollars in Kiwisaver held by bankrupt people and the Kiwisaver Act will be changed or repealed.