- crashy wrote:many say 5400, but we nearly got there today, so I think not
next is 4800, then 4200.
if it gets to 4200 Im selling all houses & buying shares.
I am with you crashy, I am preparing to move alot of cash into the market, I have recently secured some good finance.
there is alot of great companies out there, and you can't keep a good dog down,…. for long.
I agree with Dreaming. I'm putting off purchasing property and shares at the moment. A lot of property looks overpriced. I don't know a lot about shares so can't really comment in that area. I don't expect history to repeat – I wouldn't be betting on Real Estate to rise too far higher as it is already unaffordable to a lot of people.
So would now be a good time to buy?
Tyler
Tyler wrote:So would now be a good time to buy?Tyler
Look around for some companies you are interested in, look at there trading history chart, price earnings ratio, dividend yeild etc, and if there price seems to have droped back some, and made there dividend yeild and p/e ratio look good, and you feel the company is in an industry that will expand in the future then I say buy, even if the market does drop a bit more after you have bought don't worry its almost impossible to time the exact bottom, just be happy with the price you locked in and maybe buy more if they do drop. I usally have a default setting of investing a set amount every month so when the market is high my money buys less shares and when it low it buys more, this stratergy is called dollar cost avergeing it's a good long term stratergy and a good way to build up large holdings in some of your favorite companies.
Every one has heard the sayings, Buy low, sell High or Buy in gloom sell in Boom but the truth is many novice investors do the exact opposite, they see that the market has boomed so they get excited and start to buy in at high prices ignoring the figures, then the market drops a bit and their shares lose a bit of value and they panick and sell at the bottom of the market when they should be buying,… they then go and spread horror stories to family and friends of the dangers of investing in the stock market.
Hi All,
Ever heard of graham dyer { is a bit of a doomsayer} he follows elliot wave and writes articles as such.
I read his last news letter, which states that the Australian Share Market will slowly but shorely keep going down, with little retracements here and there. Then goes onto say that housing will not that far away start going down also.
His reason being housing has alraedy had its boom only a couple of years ago, people will not keep paying exurbent prices for property.
What do you reckon??Retire
crashy wrote:money is pulled out of equities and is reinvested in property. thoughts?What money? It's the same credit expansion that's been the main force pushing shares higher, property higher and national productivity higher for the last decade. Credit = loans. People borrowing to buy. If they pull money out of shares they'll pay back loans first. This also adds volatility to the market… higher leverage = more flighty investors with more to lose = wild and unpredictable swings.
Geez, I know people that have 'pulled equity' out of their home to buy shares! Crikey, talk about doubling down! Excessive borrowing led to excessive house price growth which led to further excessive borrowing (against house price growth) to fund further excessive growth in house and equity prices…
Forget about the 'subprime crisis', what we should all be focusing on is the liquidity crisis. If lending slows significantly, we'll have simultaneous falls in everything that has been bid-up by the credit bubble. Equities, house prices, art, muscle cars, numismatics, domestic productivity… you know, all that stuff. I posted a two-part rant about this here and here if anybody cares to read it.
foundation wrote:crashy wrote:money is pulled out of equities and is reinvested in property. thoughts?What money? It's the same credit expansion that's been the main force pushing shares higher, property higher and national productivity higher for the last decade. Credit = loans. People borrowing to buy. If they pull money out of shares they'll pay back loans first. This also adds volatility to the market… higher leverage = more flighty investors with more to lose = wild and unpredictable swings.
Geez, I know people that have 'pulled equity' out of their home to buy shares! Crikey, talk about doubling down! Excessive borrowing led to excessive house price growth which led to further excessive borrowing (against house price growth) to fund further excessive growth in house and equity prices…
Forget about the 'subprime crisis', what we should all be focusing on is the liquidity crisis. If lending slows significantly, we'll have simultaneous falls in everything that has been bid-up by the credit bubble. Equities, house prices, art, muscle cars, numismatics, domestic productivity… you know, all that stuff. I posted a two-part rant about this here and here if anybody cares to read it.
Muscle cars. Hope not
wealth4life.com wrote:Hello Hutch,No I am not an expert and you should not jump too quickly … my point was, that i so badly did not get across was that – being around a little longer than most here not to rely on historical data with out taking into account current trends.
It's easy to assume that if the stock market crashes where people would invest … i just believe that with the current interest rates here and the problems OS that people will sit.
And you are incorrect also because that was not the original question … ditto
D
Wealth, you are pretty correct there.
I met a guy over here on the golf course a few weeks ago who is retired, wealthy and we got to talking about (his) investments.
He has sold a lot of his shares as the market was tanking, and I asked him about property and his prediction was that there was more bad news to come (he's right so far). He has moved a lot of his cash into the money market for now.I know he is just one guy, but he is just a normal everyday average retired guy, so I bet there are many more like him.
(hey, I just realised I've made 1,000 useless posts!!)
I have to agree with foundations observation. allot of the driving force behind the market correction in both the stock and property markets are the results of massive amounts of borrowed funds…
The same thing happened in Japan in the early 90's land went through the roof banks got greedy and gave out equity loans , land owners got on over inflated sense of wealth based on the value of the land they owner and borrowed amounts they could not pay back and when the bubble popped !
recession hit the fan ! This situation is not dissimilar.
look how many average Australian salary earners have borrowed way more then the could afford to pay back comfortably just like in the states sub prime market… people borrowed more then they could afford to pay back if things went pear shaped and they Did ! take a look at the credit statistics for consumer credit . average $9,000 on a credit card ! same with the stock market if you owned $50,000 in shares you would have $12,000 equity to buy more shares…
Greed over borrowing/Lending and 1000's upon 1,000' of fools that can't handle or don't want to learn how to handle debt in a responsible way .
What about the young newly wed couple who want a 3 bedroom 2 story house on a large block in a prime local and are willing to borrow a large amount (500,000 Plus ) to get it while both are working but when the first child is born and the repayments are more then the husbands salary they wing that the government/banks and every one else owes them a hand to get out of the mess.
Foundation is right greed stupidity and the easy access to credit beyond what people can afford to payback has fueled the corrections of the markets in U.S and Aust…
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