No not really.. he was saying he got burnt over the "tech wreck" and that was what I was referring to in my quote. Losing money then is like saying I got busted for speeding by going fast in front of the Police. If people were buying shares at PE's of high double digits, on companies with no or negative earnings, and pie in the sky promises, one has to wonder at their ability to pick shares and I actually thought I was being helpful by recommending a LIC. No condescension was involved at all.
Indeed but once again that's not what he was talking about originally and not what my quote was in reference to.. that aside, some of us were simply accumulating cash for the last 18-24 months or so waiting for the overpriced market to correct, while people at STORM (for example) where pushing prices through the roof, albeit it corrected a whole crap load more quickly and to a greater depth then I expected, as you rightly point out.
I have been burned by this stock market simply by being in a very diversified SMA type set-upBut what can you do? Made me wish I was still day trading through the whole thing to be honest, as I would have been able to cut my losses much sooner at the very minimum, but, c'est las vie!
Day trading is a magic art that is of no interest to me. I understand I am not smart enough to beat the market so I don't attmept to, best of luck to others that try.
I haven't lost a cent, as I have not realised any gains (eg all my BHP portfolio is in the black) or loss's (some ANZ and some WBC for example). At the moment I have no real intention of selling for at least another 20 years.
I asked my friends who sold out and took the CG hit, what they intend to do.. invariably their response is to leave it as cash...
it will be 3% soon... do they intend to invest in shares again I ask ? Absolutely, when the market recovers... when is that, ?ranges between 4000 and 6000 points apparently... so.. they sold out of good shares, some made a decent CG, some lost, some came out about even, those that made a CG took the tax hit on that, then are happy to park it in cash and buy back in (with less of an investment as they lost lots of their capital to tax) at about the same price they sold out for..that makes no sense to me what so ever but apparently that makes me the insane one "They" could be right, it might take 10 years before we see a return to where we were but I will have earned dividends way above what they are earning in interest in the mean time and have no need of the capital...Your one of the guys I pay read on here by the way (no condescending again) I value your input and discussion, even if sometimes I don't agree with you.
I have made money out of both shares and property over the decades but I will never understand residential property (I like making cash and negative gearing is a anathema to me, and I seem to never find residential properties that are positively geared that appeal), it makes me nervous and is mostly why I avoid it... (only one IP left out of 4 owned) below sums up why I don't "get it"
no use investing on something you don't understand. As to commercial property, I have always been outbid by southerners (normally Syndey siders who bid site unseen) on local commercial property where I was looking at 10-11% nett returns and they were happy with 6% (lucky local landlords I guess who sold
) so while I tried in the past to dip my toes, I never got anywhere and decided to use my capital to expand my business instead.
