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Will be in Cash 100% 12th July 2019

Capt. Cook would have agreed.

Let's pop into Hawaii chaps !!!

gg
Very diplomatically said. I like it.

No one knows with certainty what's going to happen and when. It's about being prepared for the various scenarios that can play out.
 
Is it time to consider the inverse ETF BBOZ?

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I think I'll wait for some confirmation, like a complete double top formation or a trend reversal to the downside. At the moment I am still in "buy" mode and added a stock to the Speculative Stock Portfolio today.

You guys are welcome to keep me informed as to when the technical picture shows the bearish scenario for the asx. In fact I'd appreciate that as I am not much of a chartist.
 
That is an interesting stock, from an insurance point of view, thanks for heads up peter.
Yes sptrawler, I know some people use it to hedge a % of their long only portfolio during downturns.

Personally I don't use it for that purpose as I am not good with timing the downturns. I will only consider it in a bear market. Note, BBOZ is 3x internally leveraged though, so you don't need a lot of it to be bearish on asx. If you prefer a non-leveraged instrument, consider "BEAR" which is also tradable on the asx like a share.
 
Is it time to consider the inverse ETF BBOZ?

View attachment 96190
Definitely not.

It is a hedge fund.

A fund.

Set up for profit by directors of that fund.

Not easily tradeable to my knowledge when the going gets tough.

One always needs to be able to enter or exit a stock or derivative with the click of a mouse and not be met by the dreaded blue screen.

gg
 
From another thread: https://www.aussiestockforums.com/posts/1035828/
 
Well "I never thought the XAO would fall so dramatically in August.

Down 2.41% today.

As the Black Knight said " A mere flesh wound "

gg
Uncanny prediction about the XAO struggling finding resistance at All-Time-High GG.

Not sure if this is a short term correction or something bigger, but I have sold down my stock portfolio today and not far off from going to 100% cash.

I want to be cautious at the moment and if I am wrong, I hope to buy back some more equities again once the market takes off into new blue sky territory.
 
Early 2008 (Jan or Feb) was the last all time high wasn't it? then all down hill from there - is this a repeat performance?
 
What's interesting is the increase in volatility, its spiking up as shown below. Huge down day yesterday and a big up day today. I'll just wait. Don't want to get chopped up with these massive swings. Where to from here ?

 

BBOZ and BEAR are highly liquid with small spreads.
 
With the Reserve Bank saying they are prepared to take the interest rate to 0% GG, I would be watching for a strong reaction on the ASX, IF there are no shocks from overseas I predict a strong rebound in the coming months.
Only my opinion.
 
With the Reserve Bank saying they are prepared to take the interest rate to 0% GG, I would be watching for a strong reaction on the ASX, IF there are no shocks from overseas I predict a strong rebound in the coming months.
Only my opinion.

If we really are going to see rates at literally zero then that leaves a lot of people in a TINA situation.

There Is No Alternative to investing in something other than cash with the only question being what.

I'd be a bit wary of the banks though since they're going to be squeezed on deposits. The idea of charging someone to keep money in the bank would run into massive problems politically so the only real option is to go to zero and the banks simply eat the cost of running deposit accounts.
 
At the current RBA rate of 1% those core online savings accounts (like UBank) are still paying around 2.3 to 2.41% for your cash deposits.

If RBA rates go to zero we would most likely pick up average rates of around 1.3 to 1.41% for these online accounts.

Whilst that is woeful returns it is still not exactly zero.

I think there will be some capital draw downs by retirees if they don't take on any other investments, for example like RateSetter or the sharemarket. That's what we are up against, cheers.
 
Yes but, loans already out are generating income and 0% doesnt mean loans are 0%, it just means savings are 0%.
It probably means bank share prices wont grow, but their earnings and dividends may not change much. Just my opinion
 

You should have bought Aussie gold shares then you could have bought the shop that sold the ice cream.
 
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