With the compulsory super deductions continuing to be made at the same rate as before the credit squeeze there is a daily accumulation of investment funds available somewhere. Where is it heading. Some of it must be going into stocks. That part will look good in the long term. Some must be going into cash deposits. Any deposits will probably be lent out again. This is an input that has never been available before in history. This fact alone makes this recession different. Would someone like to put this into dollar terms?.
Where is the super money heading?
- Thread starter nioka
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No answers? The answer to this question will give a hint to the direction the aussie stock market will take. If it goes into cash it helps the money supply, if it is being invested in Aussie companies then it will help the SP of those chosen.
Where is YOUR super money heading? do you know? do you care?
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Mine's in cash at the moment.
Knobby22
Mmmmmm 2nd breakfast
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I know that Australian Super, the largest Industry fund is stockpiling cash and have been since May. Eventually they will reenter the market.
This sort of behaviour is one of the reasons besides low fees that Australian Super is in the top 5 of returns in super funds.
Here's the Government's super fund - Still 62% cash as at end of June.
http://www.futurefund.gov.au/__data/assets/pdf_file/0015/2328/Portfolio_update_30_June_08.pdf
Will be interesting to see update for September quarter.
Last I read the Future Fund was also buying up bank bills to help provide liquidity for the big banks.
http://www.futurefund.gov.au/__data/assets/pdf_file/0015/2328/Portfolio_update_30_June_08.pdf
Will be interesting to see update for September quarter.
Last I read the Future Fund was also buying up bank bills to help provide liquidity for the big banks.
Julia
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I went about 90% to cash in January and sold the remainder in early July.
Those in cash just got a jolt with the interest rate cut. Those investing this morning got some bargains. I'm still investing and moving further away from cash. I believe getting in when others get out. Hope I'm not too early. Sold some property buying some stocks.
Julia
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Re-invested term deposits five days ago thank goodness. If market volatility and interest rates are still the same in six months, it will be time to think about the yield on some stocks as a better option to cash deposits.
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Sounds like most recent contributions (9 months or so) are sitting in cash atm for Superfunds, looking to re-enter possibly before Christmas,
http://business.smh.com.au/business/super-funds-pile-up-cash-20081006-4ugu.html
http://business.smh.com.au/business/super-funds-pile-up-cash-20081006-4ugu.html
With around 100 BILLION DOLLARS per year going into super funds there is a lot of cash floating around waiting to be invested. With more than normal being deposited as cash the banks are going to get cashed up fast. The fund managers must be waiting for a signal that the market is near to a bottom and will be waiting to pounce.
I believe this provides a different set of circumstances to that which were encounted in previous recessions. I believe our market is near a bottom and that in the near future we will see super funds provide the stimulus necessary for an early recovery.
I am starting to invest in the market. I will choose cashed up companies that I believe are oversold. Actually I started Friday.
DYOR I'm often wrong. I'm not suggesting an absolute bottom but it is near enough for me.
I believe this provides a different set of circumstances to that which were encounted in previous recessions. I believe our market is near a bottom and that in the near future we will see super funds provide the stimulus necessary for an early recovery.
I am starting to invest in the market. I will choose cashed up companies that I believe are oversold. Actually I started Friday.
DYOR I'm often wrong. I'm not suggesting an absolute bottom but it is near enough for me.
