The move back to cash

[Smurf1976]

And come to think of it-as Sir Humphrey Appleby said in Yes Minister,"We'll have to start a war to take the people's minds off it."Is there anything new going on that the Americans can get stuck into to divert attention from the problems unfolding over there?

A terrorist attack would sure divert attention just as it did last time.

And as with last time, it would most likely come after the market falls and not before.

Also just like last time it would provide the perfect excuse to drop interest rates and inflate, inflate and inflate some more.

 

[ta2693]

I will take advantage of Monday's opportunity and buy more gold and oil and wow.

 

[mick2006]

Wow Mick you must be loaded.

All those MWE and FNT you were buying up until yesterday are only 5% of your portfolio

Best of luck all

I can't complain with the recent surge in oil/iron ore stocks my net portfolio is now around $4.5 million.

With recent trades adding significant value, such as UMC,CVI,CVN,CIG,TLM,CUL,MHL,LML,RAU

My portfolio currently consists of

CBA 2000 shares (average buy price of $8.94)
WOW 4000 shares (average buy price of $4.50)
MWE 100,000 shares (average buy price of 25c)
FNT 100,000 shares (average buy price of 16c)

Cash $4.25 million (netbank online saver)

 

[vishalt]

woah nice Mick lol.

I'll just remind you guys that the Dow has rallied an impressive 3627 points since June last year, in a sustained uptrend thats gone over a year (with the exception to the February China shock).

October is historically a bad month, US corporate profits have been average but overall growing BUT predicted to be double-digits next quarter.

I continue to hold my assets (NAB/Rio/PetroChina) in low gearing with short-term short positions just to make some money on the downtime, but I'm confident that Wall St will thunder ahead to records again from Christmas or the 1st few months of next year, if anything the market needs a period of consolidation after these ridiculously huge gains we've seen.

The All Ords has gone from 4800-6800, CRAZY!

 

[mick2006]

will be a very interesting morning tomorrow, with plenty of cash already sitting on the sidelines, I wonder how many people will start putting it to work tomorrow morning.

who thinks this will be a short sharp correction or a longer drawn out process?

 

[nizar]

also put some of my cash into a managed fund (Aussie large caps) during September.
There is nothing wrong with taking some profits off the table. Our market has certainly performed strongly of late and a pullback may lead to several market opportunites.
DYOR

Hi Greg,

Just wondering why you would put money into a managed funds that holds Aussie Large caps if you think there may be a pullback??

Large caps get smashed during corrections and this is what leads to the index moving lower. But im sure you know that?

Is it because you can't find opportunities so you will give you cash to a professional who maybe can?

(If it was an emerging companies fund fair enough, But large caps!!)

Any other reason?

Just curious.

Thanks.

 

[nizar]

I can't complain with the recent surge in oil/iron ore stocks my net portfolio is now around $4.5 million.

With recent trades adding significant value, such as UMC,CVI,CVN,CIG,TLM,CUL,MHL,LML,RAU

My portfolio currently consists of

CBA 2000 shares (average buy price of $8.94)
WOW 4000 shares (average buy price of $4.50)
MWE 100,000 shares (average buy price of 25c)
FNT 100,000 shares (average buy price of 16c)

Cash $4.25 million (netbank online saver)

Well done brother.
You've done very well for yourself clearly.
Finally, somebody who can give YT a good run lol

You actively trade some stocks but have a core holding of solid bluechips it seems. You're getting almost 30% yield from your CBA holding. I like.

 

[mick2006]

Well done brother.
You've done very well for yourself clearly.
Finally, somebody who can give YT a good run lol


thanks Nizar, just goes to show there is more than one way to make money in this market.

YT is the master of picking small undervalued mining plays that have for some reason been overlooked.

Where over the last 12-18 months I have become more of a momentum based trader, picking up on the current trends early, researching all the possible companies in that sector and putting my money to work, and the most important thing taking profits when you get the feeling the momentum is due to change.

The scary thing is I have left plenty of profits on the table by getting out a little early, also I was slow to put my money back in after the august correction.

Also this years tax bill will be a real killer, even though I have set up my own company to trade shares.

Could I interest anybody in investing in Polycorp International

 

[greggy]

Hi Greg,

Just wondering why you would put money into a managed funds that holds Aussie Large caps if you think there may be a pullback??

Large caps get smashed during corrections and this is what leads to the index moving lower. But im sure you know that?

Is it because you can't find opportunities so you will give you cash to a professional who maybe can?

(If it was an emerging companies fund fair enough, But large caps!!)

Any other reason?

Just curious.

Thanks.

Hi Nizar,

Thanks for your question. I've become cashed up of late and now only hold one share. I recently invested $25,000 into 452 Capital's Australian Share Fund as Peter Morgan has an excellent track record as a stock picker. From memory, he managed something like 2/3s of Perpetual's Industrial Share Fund from 1994 to 2002 with good success. His team looks for value stocks amongst Australia's leading companies.
IMO a good "value style" manager tends to outperform when things get tough. IMO its important to still have exposure to the market as I don't want to be caught out should it take off again. I don't normally invest with fund managers, but having assessed Morgan's record, I decided to invest some money for the long term. The market looks expensive at present, but long term I'm not worried at all.
If this turns out to be nasty correction, the spec end is likely to be hit much harder than the rest of the market. I also worry about the potential impact in relation to liquidity in regards to the smaller end.
These thoughts are mine only and I strongly suggest anyone interested in investing in managed funds consult a financial adviser.
DYOR

 

[greenfs]

I too have today completed the progressive liquidation of >50% of my portfolio value back into cash. Still holding in % terms reasonably large exposures to BHP, AED & OXR for the obvious taxation reasons.

 

[jtb]

I can't complain with the recent surge in oil/iron ore stocks my net portfolio is now around $4.5 million.

With recent trades adding significant value, such as UMC,CVI,CVN,CIG,TLM,CUL,MHL,LML,RAU

My portfolio currently consists of

CBA 2000 shares (average buy price of $8.94)
WOW 4000 shares (average buy price of $4.50)
MWE 100,000 shares (average buy price of 25c)
FNT 100,000 shares (average buy price of 16c)

Cash $4.25 million (netbank online saver)

Hooly dooly, nice cash balance
Kudo's bro'

 

[brilliantmichael]

Would you like us to move back to cash?

 

[mick2006]

Would you like us to move back to cash?

not suggesting anyone should move back to cash, more pointing out the fact that alot of big fund managers are starting to move to a more neutral position with larger portfolio cash weighting.

I never have less than 15% cash and in times of uncertainty like now will move to between 85%-95% cash.

If you are a longer term investor times like this don't matter, but for shorter/momentum traders as myself, now is the time to be on the sidelines awaiting the next up leg.