ASX - dead cat bounce?
- Thread starter boomtown
- Start date
I think so, but I think a multi-day bounce, lasting possbily 2-3 weeks?
MACD has been closing since July 8. I don't think it's just a one day spike. At least, I hope not, I just put a few thousand in an index fund.
i'm calling a dead cat bounce. rally to 5400 then fall away.
Somewhere for the tax refund to go ?
At the risk of hijacking the thread (sort of..), I am due to get my tax refund soon (depreciation, what a wonderful thing
).
My thinking has always been to dump it in the PPOR (garanteed 9% return atm), however I am thinking about buying shares instead, for 2 reasons:
Anyone else thinking of buying some bargain shares with their refund ?
At the risk of hijacking the thread (sort of..), I am due to get my tax refund soon (depreciation, what a wonderful thing
).My thinking has always been to dump it in the PPOR (garanteed 9% return atm), however I am thinking about buying shares instead, for 2 reasons:
- Shares are looking relatively cheap
- Historically, shares have outperformed cash - and by dumping the money into the ppor you are effectively getting the tax free "cash" return. (Is my thinking right here ?)
Anyone else thinking of buying some bargain shares with their refund ?
I have started buying shares over the past few months and had some buys in today but missed out. I am doing it with an LOC, not a tax refund though.
Your thinking is correct about the "cash return"- have you considered an offset account, rather than simily paying down the mortgage?
You could also use a loan for the shares and use the tax refund for the PPoR; this would increase your tax deductible debt and reduce your non-tax deductible debt. Of course, you should seek specific advice from an advisor/ accountant.
What happened to the low 3500- 4500 range,now it;s a rally up too 5400 the reality is no one knows,as there is such a great disparity in value between expensive high end blue chips,and the one$$$$dollar underdogs.
willair..
i said there was support at 3500 and 4500 - didn;t call the fall to there.
i said the next rally would be from 4900 - lo and behold....
i said the next rally would be from 4900 - lo and behold....
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The market rarely drops all the way to its major low in one continuous fall. May be just another bounce off the (weekly) downtrend line.
GP
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I watched Mr Faber on the ABC last night,he seems to think with the US will slow China -- also in line comes Australia,from the price of Resi Property to the price of food when he used comparative valuation statistics from several other countries, i like this statement from one of his reports in 2000,focusing on historical numbers means we're looking in the rear Vision mirror rather that through the windscreen..
http://www.abc.net.au/lateline/business/items/200807/s2310191.htm
willair..
saw this yesterday and then saw this thread this morning - it's a little beyond me but i understand the theory behind it.
Smells like a dead cat bounce | smh.com.au
http://business.smh.com.au/business/smells-like-a-dead-cat-bounce-20080721-3iof.html
Smells like a dead cat bounce | smh.com.au
http://business.smh.com.au/business/smells-like-a-dead-cat-bounce-20080721-3iof.html
Very interesting stuff alright.
I do agree we are in the middle of an asset devaluation in the western world and maybe worldwide. Share and listed property owners already know exactly how much their assets have dropped and the drop has been amplified by how much debt was involved. Any unlisted assets, including residential property, no one knows yet how much the drop will be and it may take a very long time.
Wonder what faber still thinks of agriculture? He was bullish.
See ya's.
I do agree we are in the middle of an asset devaluation in the western world and maybe worldwide. Share and listed property owners already know exactly how much their assets have dropped and the drop has been amplified by how much debt was involved. Any unlisted assets, including residential property, no one knows yet how much the drop will be and it may take a very long time.
Wonder what faber still thinks of agriculture? He was bullish.
See ya's.
TC
He's telling people to "buy a farm"!
From the front page of the Business section in today's Australian newspaper, Marc Faber told a CFA lunch in Sydney yesterday ... "not only is he convinced that food prices will go up sharply, he's sure that life in the financial services area is only going to get tougher - for a long time". (My emphasis).
That should make you one very happy farmer!
Cheers
LynnH
