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*Good News Only Thread - Stocks & Shares*

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Hi Nyden, Compared with the crash of 1987 this is not that much really. As you probably guessed, I'm 20% invested in shares, 30% in bonds and about 50% in cash. All my shares are quite high risk and that part of my portfolio has fallen about 20% since January 1st.

Australia is doing very well at the moment and this severe shakeout is likely to stop Kevin Rudd & Co from increasing interest rates, and in my view that's "Good News".

This ASX tumble, because other markets have fallen out of bed, is as much overdone as burning the toast.

This bull market has continued for about 4 years now and markets may well have needed a pull back.

Interest rates are going to hit low levels in the US and Europe and the next news, I'm betting on it, is that the US recession isn't quite going to happen afterall. President Bush is now bound to take Bernanke's advice and cut personal taxes and the Democrats will cave in and agree to it in double quick time. Good News ahead!
 
:aus:Worry thee not, as only the weak apples have fallen off the investment tree.:aus: Much selling was indiscriminate and many stocks can be expected to bounce back strongly. :aus:
 
noirua, I agree with your assessment of the market. I am a long term investor and a self funded retiree. To me the market at it's current value presents a fantastic buying opportunity. No one knows exactly where this present correction will stop, we can only guess, so what does one do? I look at the the dividends, PE ratios, earnings and long term prospects of a company and them make a decision on "what that company will do for for me now and in the future."

Over these last few weeks people have been forced to sell good quality stock at lower levels because of their margin calls. Then there is the fear factor as well when people throw out good stock for cheap prices for no rational reason. That further drives down the market which makes it look even better for people like me who want to buy good quality companies at lower prices. As I have little money left the decision for me to buy is made harder but as I don't know when the market will stop going down (and nobody does) I use the dollar cost averaging approach. I have bought a few small parcels here and there over the last few weeks topping up my outstanding blue chip portfolio. From this point if the market bolts upwards I am set and need to do nothing. If it sinks lower I am happy to hold and collect the dividends.

If it for some unknown reason it tanks even more I will be pulling out my cash and will buy even more blue chip top dividend paying companies.

This is the most important thing for sharemarket investors to understand. Why on earth would you pull your money out the sharemarket to get 6% interest and pay 30% (or 47% depending on your income) tax on that when you can easily get between 5 and 8% fully franked dividends from good stocks now? To me going into cash right now is a backward step. Lower prices now mean even better buying opportunities, higher prices from here we sit back and enjoy. If you bought at the highs and are looking at lows right now sit tight and wait, it always comes good again unless you are gambling on penny stocks that don't pay dividends no one knows anything about.

Our country and our businesses are in great condition and our sharemarket will continue to provide great returns and as long as you make the right decisions now you will always do well out of the sharemarket.:aus:
 
Yes Bill M and good old President Bush is proposing further good news:

President George Bush has acknowledged the risk of a US recession and called for measures worth US$145 billion to give the economy a "shot in the arm".

He said the package would have to be about 1% of gross domestic product and big enough to make a difference to the "Large and dynamic" US economy.

Mr Bush said it has to include tax incentives for US business and direct tax relief for the American people.
 
There is so much bad news about shares being posted on ASF. Very soon, we may have the first poster on ASF jumping out of a window or off a cliff.

If we look around at the Aussie economy, exports in particular, growth, jobs etc, etc, there is not that much for anyone to worry about. Let the band :band play.
 
from a newsletter i subscribe to

Australian Economic Perspective

There have been a number of data points recently, highlighting weak consumer spending in the UK and US. Yet this same data seems to have spooked a number of investors, leading to renewed concern and many client queries as to the resilience of the Australian consumer. Acknowledging the downside risks posed by a global slowdown, there are two key reasons why we believe the Australian consumer will nevertheless have a good year.
The first is that the factors driving down consumption in the US and UK aren’t really evident in Australia. House prices aren’t falling and the emerging shortage of housing domestically should ensure they won’t. Moreover, savings are at their highest in 7-years. Indeed household balance sheets generally are in pretty good shape.
The second is that rising interest rates and petrol prices are being offset by strong, job induced income growth and tax cuts. Very different from the US and UK experience. Leading indicators point to ongoing strong job gains and thus income growth for at least the 1H08.
 
Take your eyes off the markets and if you'r invested in Australia then there lies the least of your worries.

The Aussie$ is weakening, trading around A$1.16 to the US$ in London this morning, BST. Not a great deal of movement, as yet, but encouraging for Aussie exporters.

The London market is very weak at the moment, down over 4% on the FTSE 100. London has its financial problems with its Financial Institutions well wedded to the US markets and their sub-prime disaster problems. The property sector that boomed for over 10 years, in the UK, is well over bought. The £ is plunging against the Euro and falling against the Greenback.
***The Aussie market is quite different and these worrying problems are not an Australian one.:aus:
 
Markets appear to take the view that nothing can be done about the American economy, but before all this, talk was of the States being just able to stave off recession.

Interest rates in US Bonds are pointing closer to an interest rate decision by the Fed of a 0.75% drop. Whether this is decided on Tuesday or in a few weeks time won't really matter that much to the economy, though more, perhaps, to help market sentiment.

So much of these problems are over exagerated, wildly in some cases, and when the dust clears we will see that little has changed from a Month ago.

Lower interest rates are a good thing for companies and the low value of the US Dollar at present will be seen later as a missed opportunity for some.
 
Well, all this turmoil in markets just because some think there is more chance of a recession in the US is throwing up opportunities.

Good news in Australia with reasonable growth figures and an expanding economy looking for a rate increase. Now that expansion may be reduced just a little and pressures on inflation abating from that.

China had 11.5% growth last year and some of that on the back of the Olympic Games. Forecast by the Chinese Government at 8.5% for 2008 and all this fuss may knock it back to a more sensible 7%.
We all know the Chinese and Indian stock markets are overpriced. Partly due to the Chinese not being able to invest how they wish outside China.
 
A small chunk of good news for anyone holding CSL...
they are still sitting around high $32 mark - a fantastic performance in this market carnage!!!!

....

wish I had got in there when I was umming and ahhing about CSL months back!!!!!!!!!!!!!
 
Good News, in away it is, as the futures market shows the Dow opening about 4.17% down on Tuesday, in New York.

Plenty of confidence around on Bloomberg TV for Asian and Far East markets. Look around carefully now and look to buy those stocks that have been blasted for no reason.
 
If you want to get too excited about todays recovery then go ahead and do so, who cares.
Watch all the interest rates tumble and before long everyone will have forgotten what has happened in January 2008 or at the very least, they will not be able to remember quite what they said at the time.
 
Today I bought two blue chip stocks that are paying 9 to 10% dividends (grossed up) and I am very happy with my purchase at these prices. The sharemarket is incredible value right now and a lot of companies are paying dividends next month. For long term investments the share market sure beats 6% in a bank account where you got to pay tax on the interest, cheers for now.
 
Well, what was that all about now, good grief. Oil is a bit cheaper now and should creep down below US$80 a barrel, expensive enough me thinks.
Shares should recover in a faltering fashion, having had the wind blown out of their sales and some of the rigging in need of repair. All this due to all that shouting "Panic, panic" or was it "recession in America".
Sure, America, China and Europe will slowdown, and as forecast previously, last year, the IMF expects World growth to slow from 2007's 5.2%. We new that anyway.
 
Shoring up the battlements in America as the walls of Wall Street shake and shudder. A period of calm ahead as markets realise that this was just a severe shake out. Patience and calm are the order of the day and search in the debris for value.
 
You don't know yet! Well you could hardly have missed out on the Coal factor and the present world shortage and China's 2 month export ban. This is great news for Australia and its coal mining industry, don't miss out.
 
The Dow finished up 1.5% and the FTSE 100 up 2.5% as markets see that the US recession is just not going to happen.
New growth figures point to 2% growth in the UK in 2008 and 2.5% in 2009, and with the 2012 Olympic Games on the horizon the economy will gather speed.
The forecast Bear Market is just a massive shakeout that will do world markets a lot of good in the long run.
 
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