Rise and Fall of the NZ Share Market

The rise and fall of the NZ share market closely reflects conditions in the share market in Australia. Investors should take care when investing from either source, to think about their investment goals. It is all very well to simply say you want to make money from your investments; everyone wants to do that. But how do you want it? Do you want income to be paid to you regularly now, or are you looking for capital gains; money for the future? The NZ share market offers both of course, and history has shown that the NZSX All Index growth over a timeframe of ten years has risen by 163% even including the volatile fall that occurred in 2008 and other downturns. This proves that a longer time frame is needed to do really well with investments in the NZ share market, no matter whether you choose securities that pay now or grow over time. But the same is true for other share markets as well. Investing for a short term less than a year – in the NZ share market is likely to see you lose out big time. But what if ten years is too long for you? Then try five years; this time frame is still considered to be adequate enough to even out those hiccups; drops in the cycle. The NZ share market grew by 76% in the five years from 1998, while from 2003 to 2008 it grew by 49%. While experts constantly tell us that past growth is no indicator of future growth, for the overall NZ share market it can surely be counted for something.