Whilst most of my money is in property, I have spare cash 10k and I'm seriously considering buying some shares.
Looking at
Bhp/Woolworths/Westfield/Suncorp/Caltex
At current prices it just seems too attractive even for a property invester, or does the market still have more falling to do?Any thoughts/feelings about the current state?
regards,
SeanMate, I love sharemarket slightly more than my love for property………..and you are right, it is a fine time to buy…..but you got to know what you are doing and its not enough to just buy some big company cause you know its profitable and its got a big brand……For example, banks are down 40% in last 3 months which makes the flow ons to property enormous (and everything else)
My point is: educate yourself……….stick to what you know………for example, there are many sound property trusts and developers going for an absolute bargain at the moment……..but make sure you can tell the difference between an MFS and an absolute gem.
Work outwards from you sphere of knowledge and expertise…..
http://therainmaker.net.au
Small Stock InvestingHaving spent over 25 years in the markets and 9 years of that in the UK on the Trading Floor in London this Bear market (And Yes i was there in 87) is not like any seen before.
Many young and inexperienced investors have never seen share values fall as quickly and this time around it is not only the mums and dads who are running for the hills in fear of protecting their capital but also some of the larger Fund Managers.
The market is made up of tqo types of stocks those that have fallen from grace and favour and lost investor a lot of money and those that are sitting on or above all time highs.
Yes there are stocks you can buy and make money on them but there are just as many you can loose on.
Seek professional advice before you through 10K into the market on a couple of so called Blue Chips.
By the way with the amount you are considering investing you wont buy many of the mentioned stocks due to their current prices still be a high $$$ amount.
Richard Taylor | Australia's leading private lender
How have you been enjoying the market Richard……..you are probably right in this correction being unlike any other……..I always thought our correction would be triggered by the end of the commodity cycle which would then wash over our finance sector which is an incredibly large part of the index……..For this reason, I don't see this as being 'as bad as it gets' but more a stumble on the way…a very big one…it makes me giggle hearing people move into commodities as a 'safe haven'…I remember many of the experts saying the same about banks
I've been somewhat insulated from falls mainly cause I'm not at all an index dweller and own lots of small stuff whose future more depends on their internal management rather than external macro factors….noone is immune however..still, it's been a great ride and looking forward to the market starting to appreciate since its been almost three months of falls….
http://therainmaker.net.au
Small Stock InvestingThe introduction of Short Selling was the best thing that ever happened to a Trader / Investor as you can play both sides of the market.
One thing is for sure you make money quicker on the way down than you do on the way especially if you are on the right side of the market.
Richard Taylor | Australia's leading private lender
So Richard, i'm a new user, but interested to hear your opinion – given your trading experience – is this worse than 87 for shares?
reneeIn 87 i worked for Chase Manhattan in London (as it was then) as a Currency Trader on the trading floor.
Several broking houses lost millions and stories of stockbrokers jumping out of first floor windows were abound.
In 87 the factors were different than today with the mums and dads bailing out but largely the fund managers and professional traders stayed the course and benefited from the subsequent bounce.
07/08 is totally different with volumes up considerably and large fund mangers and superanuation companies flooding the order book to be short.
Anyone who tells you it is a good time across the board reminds me of the boy who tried to catch a falling knife…… he got hurt.
Yes a short term trader may make a couple of quid in buying the bounce on a day to day to day basis by going long but the real money is made when the knife has fallen to the floor and volumes increase around a base allowing the price to move forward. Any increase on low volume will not be sustained so confidence in a stock is important.
Today price action indicates how volatile the XJO is having been up over 235 points up in early trade to fall back and finish up just 124 points. If it was a good day why did we close so far off our highs.
Consumer confidence was the lowest it had been for 8 years and the sellers didnt think much of early gains.
Jump in now at your own risk…………….
Stocks such as Suncorp actually fell on the day.
Richard Taylor | Australia's leading private lender
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