Interest rate cuts are great, happening here in New Zealand too. But there are a lot of companies still going to the wall, lots of redundancies As a result, the price of living sux, and it's getting harder and harder to get a job due to oversupply creating pressure on wage rates. So on the whole I think things will continue to be tuff into early 2025.
Personally, I'm investing in long term businesses that have long term customers like Government contracts. Saidly I have sold stock like $McDonald's(MCD)$ $Lowe's(LOW)$ $Pepsi(PEP)$ and the like. I see more belt tightening on the horizon and an interest rate drop alone won't fix it.
$NVIDIA Corp(NVDA)$ And $Rocket Lab USA, Inc.(RKLB)$ are two I'm putting more money in, because what happens short term won't impact on them to the same degree. I'll buy back the others as they drop, cause they are great companies, but with headwinds.
I own a construction company, work is tight, contractors are undercutting each other, what I could afford to pay my guys last year, I can't now. I have qualified builders wanting work from me willing to work for $50 per hour, the going rate last year was up to $70. Been in this game over 20 years, so I know this drill well. Survival mode, let the others underprice and go under. As contracts end, my contractors have no certainty of future work in the short term. The building industry is cut throat, in booms no issues, but now, as the owner of a construction company all the risk is with me. So I downsize, keep loyal clients happy, batten down the hatches, and ride out the storm
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