WHEN THE BULL BUCKS
New Zealand Listener|March 12 - 18, 2022
User-friendly apps haved lured hordes of new investors to the sharemarket during the pandemic. But with 2022 looking volatile, are they prepared for what could be a wild ride?
PETER GRIFFIN
WHEN THE BULL BUCKS

Investors who flocked to online share-trading platforms during the pandemic face a white-knuckle ride this year as a host of global issues weigh on sharemarkets.

The early months of 2022 have not had the sheer, heart-stopping drama of March 2020. That’s when fears over the spread of Covid-19 saw the US stock markets shed value in a crash reminiscent of Black Monday in 1987 or the Great Crash of 1929. But investors have still had a bad start to the year – the worst since 2009, with some high-growth tech stocks experiencing 20-30% declines.

Fears over inflation and interest rates started the slide. Both are on the rise everywhere, which is bad news for sharemarkets. Inflation, which hit a four-decade high of 7% in the US last year and 30-year high of 5.9% here, eats into consumers’ purchasing power. The buying frenzy of the past couple of years, on everything from houses to iPhones, is coming to an end and even necessities such as groceries and fuel are causing bill shock.

For a long time, low-interest rates have deterred small-time investors from plonking their spare cash into low-risk assets like term deposits. Seeking higher yields, they have instead ploughed their money into higher-risk assets, such as shares, property and cryptocurrency, to get better returns. But now that interest rates are climbing again, it has made safer investments such as bonds and business loans more attractive, so investors are likely to rebalance their portfolios in their favour.

Denne historien er fra March 12 - 18, 2022-utgaven av New Zealand Listener.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

Denne historien er fra March 12 - 18, 2022-utgaven av New Zealand Listener.

Start din 7-dagers gratis prøveperiode på Magzter GOLD for å få tilgang til tusenvis av utvalgte premiumhistorier og 9000+ magasiner og aviser.

FLERE HISTORIER FRA NEW ZEALAND LISTENERSe alt
First-world problem
New Zealand Listener

First-world problem

Harrowing tales of migrants attempting to enter the US highlight the political failure to fully tackle the problem.

time-read
3 mins  |
September 9, 2024
Applying intelligence to AI
New Zealand Listener

Applying intelligence to AI

I call it the 'Terminator Effect', based on the premise that thinking machines took over the world.

time-read
2 mins  |
September 9, 2024
Nazism rears its head
New Zealand Listener

Nazism rears its head

Smirky Höcke, with his penchant for waving with a suspiciously straight elbow and an open palm, won't get to be boss of either state.

time-read
2 mins  |
September 9, 2024
Staying ahead of the game
New Zealand Listener

Staying ahead of the game

Will the brave new world of bipartisanship that seems to be on offer with an Infrastructure Commission come to fruition?

time-read
4 mins  |
September 9, 2024
Grasping the nettle
New Zealand Listener

Grasping the nettle

Broccoli is horrible. It smells, when being cooked, like cat pee.

time-read
3 mins  |
September 9, 2024
Hangry? Eat breakfast
New Zealand Listener

Hangry? Eat breakfast

People who don't break their fast first thing in the morning report the least life satisfaction.

time-read
3 mins  |
September 9, 2024
Chemical reaction
New Zealand Listener

Chemical reaction

Nitrates in processed meats are well known to cause harm, but consumed from plant sources, their effect is quite different.

time-read
4 mins  |
September 9, 2024
Me and my guitar
New Zealand Listener

Me and my guitar

Australian guitarist Karin Schaupp sticks to the familiar for her Dunedin concerts.

time-read
2 mins  |
September 9, 2024
Time is on my side
New Zealand Listener

Time is on my side

Age does not weary some of our much-loved musicians but what keeps them on the road?

time-read
7 mins  |
September 9, 2024
The kids are not alright
New Zealand Listener

The kids are not alright

Nuanced account details how China's blessed generation has been replaced by one consumed by fear and hopelessness.

time-read
4 mins  |
September 9, 2024