Well, NZ meeting “that” technical definition of a recession again (2 negative quarters of GDP growth back to back).

I would say the downturn is very much upon them, given housing.

Inverted yield curve, PMI’s down the drain, housing sales crunched, builders (e.g FBU) with weak/vulnerable guidance, and retail sales anemic.

I think Fletchers is an interesting high risk high reward trade, the yield (near double digit) is telling you that the market thinks earnings and dividends are unsustainable, and so if NZ can squeak by without a nasty housing correction, the stock will likely do quite well from a total return perspective.

Not one for the Core portfoolio, just yet, but fine in small size for higher risk seeking strategies.

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