In typical fashion is is reported that:
“Analysts say the New Zealand dollar now appears overvalued, but there are few signs it is going any way but up for now.” (Radio NZ)
What on earth would this mean and what does it add to the net sum of human knowledge?
- compared with what exactly is the NZD overvalued?
- is it over valued for an importer?
- what is its “correct” value?
- Who exactly has got this wrong?
- Is even one analyst short the NZD?
Even to have said “there is of course no way of knowing how far up the NZD will go or when it might reverse but in the meantime its rise favours importers but not always exporters” might have been at least closer to the truth.
But no – easier to succumb to the temptation of filling the news space with that which is easy to say, requires no thinking and is essentially cut and past from the last time one felt lazy of an afternoon.