Australian (ASX) Stock Market Forum

CASH is King

[Half your luck still having some cash, good luck!

QUOTE=MR.;392234]Is Cash still king?

Have any cash? If it’s in a term deposit what term is it on? 3mths or maybe 6?
Either people want to keep their funds not far from reach (to re-enter markets) or (they just haven’t thought that far ahead) I wonder what rates the banks will offer in just 3 months time!

If you are just waiting “short term” to re-enter the markets just be aware there appears to be many of you.... That spells Volatility!

Have you held cash for several years waiting for this moment? Several years ago didn’t you decide not to invest in shares and hold cash “await a crash perhaps” now tempted back in because of the massive drop? Are shares that much lower than when you decided not to buy them “several years ago?” Don’t miss out!

Cash is not King anymore! Don’t miss out! .... Did you think of that yourself? Is a Financial Planner behind it? Financial Planners could have never made everyone rich? What is the use of cash if you don’t use it when the time is right, like NOW!

It’s appears to be most often the most simplistic of thoughts that make the most sense but we seem to resemble sheep at times. For example: For China to de-couple from America is it likely to have happened during a boom or bust? Hint, does China appear to follow the S&P or Dow, they were during the boom? To me it must be a bust then,.... but not just yet I feel. If the “West” is in recession surely China would be effected, exports, incoming foreign funds, sentiment in general. What? China’s effected????

So the ones who saved some cash or were lucky enough to bail back in September all flood back into the share market sooner rather than later. Maybe finally buy some property as well as its down a little and when interest rates go down property goes up! I'm told! The share market is at the lowest for years. Shares are half price and dividends outweigh bank interest. The charts are looking so attractive, just need a change in direction perhaps!

Another simplistic question which we will all ignore:
Is everyone now anywhere near being out of debt?
The government has not written off a part of everyone’s debt just yet! And I don’t think people have worked it off yet.

So far I have locked 40% in term deposit for 3 years. I am one of very few! This will not be over anytime soon. But we all know this!
Cash remains King while the mass’s carry heavy debts.
Don’t believe.... Wait and see.........[/QUOTE]
 
Well ING Direct today dropped their savings rate to... 3.75% :eek:

Term deposits dropped too:

30 day is 3.75%
90 day is 5.00% (temporary?)
180 day is 3.10%
1 year is 3% (why would you bother?)

Quick look shows ANZ also following around these figures. Doesn't look they really want anybody's money anymore.

Not sure cash is King really anymore.. more like Prince Charles :p:

Will be interesting where people will end up putting their cash from now on in. 1 year deposits that may have been entered back in say March will be rolling off soon.. 6 months must be coming up soon for a lot of people.
 
BankWest are still advertising 4.81% for their 3 or 4 month term deposits, and RaboPlus are still advertising 5% for their business savings account.

Although for how much longer ...

GP
 
gfresh;395029) said:
Quick look shows ANZ also following around these figures. Doesn't look they really want anybody's money anymore.
In commentary this evening about SUN's chopping of dividend, the suggestion was made that ANZ may soon do likewise.



Will be interesting where people will end up putting their cash from now on in. 1 year deposits that may have been entered back in say March will be rolling off soon.. 6 months must be coming up soon for a lot of people.
Yes, indeed. But following the 1% RBA cut this week, there seems to be considerable thought that any further cuts will be further apart and significantly smaller. So if the alternative to a secure cash deposit in the meantime (preserving capital) is the risk of buying shares which could further tank plus have reduced dividends, then many will opt for the security until there is some clarification of where markets are going.
 
View attachment CHART 1900-2009-A-a.bmp

The above chart is from http://stockcharts.com/charts/historical/djia1900.html

108 years of the DOW.

The chart has been correctly plotted.
ie: When the DOW doubles it is the same verticle distance on the chart no matter the number!

Plotted an average "red line". Dow at 2009 is "3000" today is "7555".

On the above website you can choose any 20 year segment.

1900 to 1920 50 - 107 ..... 114% increase
1920 to 1940 107 - 150 ..... 40%
1940 to 1960 150 - 680 ..... 353%
1960 to 1980 680 - 840 ..... 24%
1980 to 2000 840 - 11500 ..... 1269%

From 1980 to 2000 what made PROFITS rise by so much?
Technology? Debts? ........? ..........?

The average of the DOW in 2009 turned out at 3000 (as above)
Is it fair that because companies have claimed profits in advance via debt that the DOW will go lower than that average line? ...... comments?
 
From Inside Business this morning:

Alan Kohler:
Australian Shares over the last 10 years is now less than 6% per annum including dividends.

and

Robert Buckland...... Citi Global Equity Strategist UK

“Equities have become the long term savings class of choice. “
“Global bonds have outperformed Global Equities this decade. “

“We think corporate profitability will halve from peak to trough. We think the trough will be in 2010”

“The ability of equities to rerate again when they recover will be restrained by the continued selling of equities as an asset class. Pension funds decide to have 20-30% in equities instead of 70 – 80%.”
“This will be after a rebound in 4-5 years time”
 
From 1980 to 2000 what made PROFITS rise by so much?
Technology? Debts? ........? ..........?

Probably a combination of what you said, but don't forget demographics either ;) After WWII, the large burst known as "the baby boomers" were born, and by 1983 the first lot of them was turning 37, or where many of them start approaching maximum spending capacity. That is kids grown up, mortgage nearly paid off, better paying jobs - in early 80's time anyhow, things have shifted a bit now to kids not leaving until 25, larger mortgages, etc.

So in that period there was some ~17 years of the "baby boomer" approaching 37-54, there was a large demographic shift which resulted in large consumption, larger company profits, etc.

One explanation I have read anyhow.
 
From Inside Business this morning:

Alan Kohler:
Australian Shares over the last 10 years is now less than 6% per annum including dividends.

and

hello,

so just plod along banging as much cash into the bank/super fund (cash option) as you can

work on getting MASSIVE $ from your income and all is rosy

thankyou
robots
 
hello,

so just plod along banging as much cash into the bank/super fund (cash option) as you can

work on getting MASSIVE $ from your income and all is rosy

thankyou
robots

I read some sarcasm there bots. I'm not sure "all is rosy" at bank interest returns! Are you still suggesting property being the answer?

From the Australian Job Loses thread:
Job Loses
It will be the undoing of the property market here in Australia.
 
I read some sarcasm there bots. I'm not sure "all is rosy" at bank interest returns! Are you still suggesting property being the answer?

From the Australian Job Loses thread:
Job Loses

hello,

no, no sarcasm, the answer for those able is concentrating on getting a big income

then just save, save, save as much as possible

income will get you to buying shares, property or $ in the bank (which maybe a serious consideration)

you see people with good super balances and typically its from "compulsory" savings, EASY

thankyou
robots
 
Anyone who isn't in cash atm is very brave.

The markets are very jittery, the US is a basket case, the Chinese are going to put the screws on the rest of the World, the Islamist nutters are building up for a big surpisse attack and the tip sheets are doing mail outs again.

All sure signs of a new Bear, especially the tip sheets.

gg
 
I largely agree, gg. I'm still more than two thirds in cash.

You're right about the tip sheets. Huntleys have the best part of a page in 'The Weekend Australian' today.
 
I largely agree, gg. I'm still more than two thirds in cash.

You're right about the tip sheets. Huntleys have the best part of a page in 'The Weekend Australian' today.

Funnily enough, I just read the OZ prior to logging back on just now, and as soon as I saw your name in the thread, I had a fair idea what your reply would be. lol.

gg
 
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I hereby resurrect this thread.

Cash is King.

A cashless society is a restricted and constrained society and is under the control of governments and financial institutions and taxation bodies.

Further, to scam my cash, you have to get past me and 2 baseball bats.
Batter up anyone? 😬
 
The cash system is quite expensive to run, from what that shop keeper says on the third sign they obviously just haven’t thought about it to long.
1.5% of a business's gross takings would still be more expensive in most cases for the labour required to deal with the cash. A small business owner worked it to be the labour cost of a full days pay for one of their employees. It doesn't take a day for a small business to balance a till and bank the money.
 
The cash system is quite expensive to run, from what that shop keeper says on the third sign they obviously just haven’t thought about it to long.
in defense of physical cash though, we get to be more mindful and think twice before spending it, i've come to notice my money burns quickest when i spend from my saved card or digital wallet
 
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