High Yielding Shares Again

As I am fast nearing break even point for BHP and WOW, I am nervously looking at the current bull market wondering whether I should be selling out simply because I have been waiting for some months for the break even moment. There is a nervousness that the bull market can stop and then drop precipitously at any time and then I would regret not reclaiming my capital. On the other hand, I am, in a small way, hoping for some profit and as I do not need the cash, feel that I may as well hang on until some profit is made. So there is more nervousness now on a daily basis than when the entire portfolio was down 20%.

I always ask my self that question, in which situation will I feel worse? It has helped me over the years.
Once held a stock which was predicted to rise to $12.00 (bout at IPO at $0.20), so when it rose to $6.00 (30 times in value) I asked the question? And guess what, I was so glad I sold out, it took over 1 month, so volumes and price would not be compromised, it was a prospecting small company, the mine did not come into fruition, not even sure if it exists now, probably does exist in cents now?
So ask yourself that question, it may help, right?
I know I am so glad I sold at $6-$5, rather than be greedy and make future $12, when in fact the price is negligible now.... I think capital protection is number one rule, as you point out, waiting out for the recovery can be long and painful....at least the money you take out can be reinvested otherwise no money no reinvestment, right?
I think someone once mentioned people loose money in property because of two major things, greed and fear, and from experience I do understand what they mean now...same can be applied to any investment asset I think.
So learn on your mistakes..... under what situation will you feel worse, missing out on the extra gain, or making the extra loss or loss of the time?:)
 
I always ask my self that question, in which situation will I feel worse? It has helped me over the years.
Once held a stock which was predicted to rise to $12.00 (bout at IPO at $0.20), so when it rose to $6.00 (30 times in value) I asked the question? And guess what, I was so glad I sold out, it took over 1 month, so volumes and price would not be compromised, it was a prospecting small company, the mine did not come into fruition, not even sure if it exists now, probably does exist in cents now?
So ask yourself that question, it may help, right?
I know I am so glad I sold at $6-$5, rather than be greedy and make future $12, when in fact the price is negligible now.... I think capital protection is number one rule, as you point out, waiting out for the recovery can be long and painful....at least the money you take out can be reinvested otherwise no money no reinvestment, right?
I think someone once mentioned people loose money in property because of two major things, greed and fear, and from experience I do understand what they mean now...same can be applied to any investment asset I think.
So learn on your mistakes..... under what situation will you feel worse, missing out on the extra gain, or making the extra loss or loss of the time?:)

Great perspective thank you. I think in hindsight I would preferred to have sold out and taken a small loss with WOW because now I am behind the ape ball once again.
 
Hi All

Am looking at parking my money/profits into some high yielding shares, purely looking at income.

Have been told that the market is too high at the moment, happy to sit and watch. Would be interested in comments on those who are also buying for yield.

I was told that some property listed funds are returning as much as 9%. Very attractive.

I will be drip feeding around $700K, and would like to generate 8% is this possible? BTW have not been researching shares for years, so I will start to research further but this is a starting point.

Any help would be appreciated.

Cheers
MTR:)

Ok the original thread..back to high yields, perhaps I was a tad ambitious at 8 percent, realistically 6 percent fully franked?
 
Ok the original thread..back to high yields, perhaps I was a tad ambitious at 8 percent, realistically 6 percent fully franked?

That's 8.6% grossed up. If you are just chasing yield maybe look at VHY to start with which provides a diversified basket of yield stocks in one Etf. As for timing, can't help there. There are drawbacks to chasing yield of course, capital protection being one. MTS for example has very high yield, but divergent views exist on the future SP! As with property investment, a longer term view is helpful.
 
Is yield everything though, check out the high yielding stocks on the list here ?

Hi RW
No, yields are not everything, would be diversifying and would be nice to high some sold high yielding shares. I think realistically fully franked for cash flow perhaps around 6%
 
Re: Hedging and Index Funds

In Dan Bortolotti's book, Guide to the Perfect Portfolio, he outlined the true cost of hedging when comparing a U.S.-listed S&P 500 ETF to a currency-hedged S&P 500 fund. In theory, their returns, in local currencies, should be the same, but they're not even close. The currency hedging costs the hedged fund between 1 per cent and 3.5 per cent every year.

According to Raymond Kerz'rho, a director of research at PWL Capital, currency-hedged funds are burdened with high internal costs that drag down results.

Raymond Kerz'rho's Paper here

Also a report on Morningstar by Ben Johnson To Hedge or Not to Hedge?
 
Who knows, there are thousands of hedge fund managers out there. They need to take contrarian positions to justify their fees and try to outperform. Most underperform after fees (typically 2 & 20). For him, the move and press coverage will likely bring strong inflows as clients who share his outlook will want to get on board. A win-win for the hedgie. Personally if you have a bearish outlook id be steering clear of hedge funds and be looking at Oaktree Capital (Howard Marks) and Fairfax Financial (Prem Watsa) who are well positioned to profit from a significant downturn. Not advice etc.
 
hedging is the biggest bunch of BS i've ever come across - in any market, across any margin, in any fund - it's always AT LEAST 50% MORE expensive than advertised to FULLY hedge a position.

try portfolio margining and see the exact difference between "industry standard hedging" and "fully hedged".

it's dumber than paying $1 to save 30c in tax.
 
Go to any money exchange and exchange $50 to another currency, then change it back again, now do that several times more as currencies fluctuate :D
 
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