2008 - where to from here?

[Nyden]

I just sold everything then also. Will consider buy back in near future.

had $31k

Sold for $34k

happy to take it for now

Why be sad about that? Many are sitting on losses & would be happy with break-even, and thrilled with gains. Be pleased that you got out with some profit!

 

[evwatkins]

yeh true! i guess some have been hit very hard.

Profit is profit, least i still have the money to buy back in

 

[DionM]

yeh true! i guess some have been hit very hard.

Profit is profit, least i still have the money to buy back in

Go stick that $3k profit on CNP

 

[jman2007]

Well this is the $1,000,000 question isn't it?

Certainly I think the days of any Joe Blogs being able to chuck 5K at every stock that takes his fancy and just being able to sit back and watch the cash roll in, are over....

If indeed we have entered bear market territory, then investors will have to radically change their changing strategies. Personally, I would be reducing my exposure in those companies with projects in pontentially volatile countries, and also lightening on stocks with direct exposure to the US credit market.

I think 2008 will see choppy trading, and if the market continues to decline, then we could also see periods of "failed rallies", as alluded to in dhukkas excellent Jan 12th post. Personally, I take some heart from the relatively strong Australian economy and the possibilty of countries like India and China "soaking up" some of the damage done from the credit crunch.

Asias desire for commodities isn't exactly about to dry up, I still think that there are some excellent hopefuls in the gold, uranium and iron ore category, it will be important to take a long-term view however, and if you are one for panicking over short-term price falls this could be a very difficult year for some people.

jman

 

[vishalt]

well said jman, i think shorter-term investors will need to learn how to short as well, i couldnt have soaked if not profited from the damage caused to the market & BHP, im riding happy!

 

[jman2007]

well said jman, i think shorter-term investors will need to learn how to short as well, i couldnt have soaked if not profited from the damage caused to the market & BHP, im riding happy!

Glad to hear your damage control is paying off vishalt,

I haven't really tried out the shorting strategy myself yet, as a long-term value investor, I might have to consider some kind of scheme like this though...

jman

 

[gfresh]

I find it a common theme disussed that the trend may be small rallies that will fail... However seeing as everybody is expecting this behavior, will anybody be game to be trading these rallies, knowing the final result is ultimately down? Such scenarios just seem almost a little, too predictable ?

Already from what I can see, any intraday rallies have simply collapsed before even getting past a market close.

 

[DionM]

Already from what I can see, any intraday rallies have simply collapsed before even getting past a market close.

Today being a classic example. The banks rallied (strongly in some cases) this morning but the day ended up slightly down.

 

[sideshowbob]

Im feeling good about selling on Tuesday at 12...

BNB has dropped 7% since
BHP 6%

And the rallies are just hopeless....

At least nobody can say that the market kept enticing them all the way to the bottom!

 

[dalek]

As a longer term investor with some spare cash allocated to "range trading" a couple of favorites for fun & profit, the current and pain of watching last years gains evaporating is causing some tension at the homestead, however, I cling to some optimism based on the quality of the companies that currently have my money, the relative strength of Australia's economy and the world's ongoing demand for a decent quarry to provide raw materials (that would be us)
While history provides us with graphs to provide some predictive comfort that it will be alright in the end, as we know, the ensuing journey is often very uncomfortable with our opportunity funds locked away for long periods waiting for the recovery.
One of many variables that I have not come to terms with is the rapidly increasing volume of superannuation cash in Australia that needs a home and what positive effect it must surely exert on the ASX
Is there any substantive comment or data available on this subject that anyone is aware of ??

 

[Aussie2Aussie]

Im feeling good about selling on Tuesday at 12...

BNB has dropped 7% since
BHP 6%

And the rallies are just hopeless....

At least nobody can say that the market kept enticing them all the way to the bottom!

Bet your feeling even better today sideshowbob!

 

[sideshowbob]

sideshowbob might have got this decision right for once.
yeh Im feeling good... I'd feel better if everyone was making money though