Come on ASX - get your *ss up

[lizzie]

Naturally - listed shares to sell last week (at a set price) and the guts then fell out of the stock market.

Fortunately I don't NEED to sell for at least another two months, and have enough reserves if the market doesn't recover, but wondering what has happened - asides from low coal prices as it's not just coal related companies - to cause this across the board drop.

Thoughts from the stock market guru's?

 

[Brady]

US market dropped after talk of rate increase.

 

[pinkboy]

Also a lot of stocks are going ex-dividend after August reporting season so there is a fair sell down as once on the register, investors sell out.


pinkboy

 

[roe]

Iron ore price 5 year low, 1 gone Belly up
US hawkish on rate
consumer sentiment fell off the cliff.

what stock are you trying to offload? I may be able to give my opinion of its likelihood of recovering..

Some stocks has not been affected by all this but keep charging ahead

 

[Mr. Fabulous]

Naturally - listed shares to sell last week (at a set price) and the guts then fell out of the stock market.

Fortunately I don't NEED to sell for at least another two months, and have enough reserves if the market doesn't recover, but wondering what has happened - asides from low coal prices as it's not just coal related companies - to cause this across the board drop.

Thoughts from the stock market guru's?

My advice to you Lizzie is to stop asking 'Why?' and just accept that it is what it is. You're searching for a rational answer to a situation that is anything but.

 

[Lord Shanghai]

As a % of GDP, the Aussie market is neither cheap nor expensive.

The gorilla in the room is the grossly overpriced US market which is due for a fall, particularly the hi-cap end of the market. And when the US sneezes, we catch a cold.

 

[lizzie]

I'm more wondering if there is a chance of a short term (2 month) recovery.

RIO
WBC
CCL

I was surprised at the recent drop in CCL

 

[Mr. Fabulous]

Lizzie, if you cross your fingers hard enough, it might happen!

Also, in all seriousness, stop listening to people that tell you 'Oh, it's like this because of X, Y or Z.' No one knows why it is how it is, but people love spouting theories that do nothing more than cause confusion.

The only honest answer anyone can give you to any question such as you've posed is 'I have absolutely no idea'.

 

[Player]

My advice to you Lizzie is to stop asking 'Why?' and just accept that it is what it is. You're searching for a rational answer to a situation that is anything but.

Agree. Very well put.

Lizzie, there is a good book worth a read that serves all types of investments but more so the stock market.

"Your Money and Your Brain" by Jason Zweig.

 

[willair]

Naturally - listed shares to sell last week (at a set price) and the guts then fell out of the stock market.

Fortunately I don't NEED to sell for at least another two months, and have enough reserves if the market doesn't recover, but wondering what has happened - asides from low coal prices as it's not just coal related companies - to cause this across the board drop.

Thoughts from the stock market guru's?

Don't know could be another "Black-October" in a few weeks,but some of my US based mates tell me the break even price for iorn-ore is just under
$50.00 AUS,so with that in mind and thinking backwards when Leac-Walesa's Solidarity Party took on the Polish Government and came out the other end a different country in the 1980's,Some say that could or may well happen in China as all unions in China are managed by the All-China Federation of Trade Unions and from what I read in Chinese news papers they are having serious problems in control and wages,"IF" that happens then the flow on chain linked supply chains with Australia and China may become complicated for everyone in Australia,like I said I don't know..

 

[Aaron_C]

My advice to you Lizzie is to stop asking 'Why?' and just accept that it is what it is. You're searching for a rational answer to a situation that is anything but.

Oh yes indeed. Mr Market is very irrational.

 

[lizzie]

My advice to you Lizzie is to stop asking 'Why?' and just accept that it is what it is. You're searching for a rational answer to a situation that is anything but.

I wasn't really really wondering "why"... it is what it is ... I just want it to improve and was curious if there "was" a why.

Again CCL was the surprise considering how many chips and coke I see in supermarket shopping trolleys

 

[china]

I entered bhp today at 35.77. A few reasons.

1.It has been trading in a 35-39 band for the past twelve months so hopefully it will do this again one more time.

2. The fall in iron ore price has wiped out smaller miners and may be beneficial to bhp which has more diversified assets and higher grade iron.

3. The overall market is down today.

4. The technical indicators MACD and bollinger bands look suitable.

5. Various analysts - motley fool and intelligent investor - have a buy recommendation on bhp

6. Dividend is close to 4%

If it can go up one to two dollars in the next two months I will be pleased. I am expecting a little bit more short term price drop perhaps and then rise hopefully.

Are my reasons sound?

 

[Lord Shanghai]

Are my reasons sound?

Why not test your own hypothesis by buying Call options? Or, if you are really gutsy, writing some Puts?

 

[Lou Reed]

Your Money and Your Brain" by Jason Zweig.

Thank you Player for the reference,

Cheers

 

[D.T.]

Whats the plan china? Hold and wait til its 39 then sell it all? Is it un leveraged?

 

[china]

Whats the plan china? Hold and wait til its 39 then sell it all? Is it un leveraged?

Yes hopefully can sell for profit. All unleveraged.

 

[Crabnet]

I wasn't really really wondering "why"... it is what it is ... I just want it to improve and was curious if there "was" a why.

Again CCL was the surprise considering how many chips and coke I see in supermarket shopping trolleys

Add into the mix of what others have said a fall in the exchange rate.
Many Australian stocks are held overseas and when the exchange rate drops and looks like going into a down trend many overseas holders will be sellers.
When sellers outnumber buyers the sp trends down.
The Aussie dollar may be in a down trend.
For some it will be a buying opportunity.

Re Coca Cola Amatil they recently issued disappointing guidance.
With profits down and a cost cutting program announced the outlook for growth is diminished due to weaker sales in convenience stores and petrol stations and pricing pressure in supermarkets crunching margins in its earnings engine room, the Australian beverages business.

 

[china]

Why not test your own hypothesis by buying Call options? Or, if you are really gutsy, writing some Puts?

Don't know anything about options at this stage - thats something for me to look into down the track.

 

[KayTea]

I entered bhp today at 35.77. A few reasons. .......

Are my reasons sound?

I like your reasoning China, but how great would it be if we all had a crystal ball. If only reasoning was all it took to work out what was going to happen next - we'd all be worth a mint by now! I'll keep an eye on that one myself now too.

Might I also suggest having a look at SRX (Sirtex - Medical). Their announcements throughout this year have driven their prices higher and higher on a regular basis. Also, based on the last few years, they pay their dividend around late September (no announcement for this year, as yet), so it could be worth getting in now. Also, check their growth over the past 1, 5 etc years.

Scary thing is, a couple of Year 12 school girls put me onto this little 'gem' as part of our participation in the ASX Schools Sharemarket Game (yep, I'm teaching them all about in investing from an early age - I wish someone had done that for me..........)

KayTea