My shares down -15%

[casper007]

I've seen many posts comparing the virtue of Shares VS IP's. Not wanting to open the can of worms again ... but I can't help but share (pardon the pun)this one.

My wife and I went to see our Financial Planner yesterday (1/4ly review) It is always fun giving him a hard time by comparing our IP growth to our managed funds growth... or lack there-off

Yesterday he cracked us both up by starting with this comment ... " We have a negative return but it's not as negative as some other planners client portfolios"

We just lost it ...

But fortunately for us ... the managed funds are a long term investment so we only lose if we sell out ... But it was fun none the less

 

[Humphrey]

Good old fp's.

 

[Andrew_A]

I've seen many posts comparing the virtue of Shares VS IP's. Not wanting to open the can of worms again ... but I can't help but share (pardon the pun)this one.

My wife and I went to see our Financial Planner yesterday (1/4ly review) It is always fun giving him a hard time by comparing our IP growth to our managed funds growth... or lack there-off

Yesterday he cracked us both up by starting with this comment ... " We have a negative return but it's not as negative as some other planners client portfolios"

We just lost it ...

But fortunately for us ... the managed funds are a long term investment so we only lose if we sell out ... But it was fun none the less

No you lose anyway, the loss you have is very real whether you sell or not as the shares don't know who owns them or what their owners intentions are. That there might be better relative value available for purchase now in no way removes capital losses, the only lose when you sell line is wrong.

It's classic bear market spin, I have read about it in many places concerning previous phases and am not reading and experiencing for myself for the first time. When the tide is rising the focus is on the hot tip and when it's falling it's 'stay the course' until the market can once more bail out those who add little value, or who actually destroy it.

 

[BayView]

Shocks and scares

 

[ggumpshots]

No you lose anyway, the loss you have is very real whether you sell or not as the shares don't know who owns them or what their owners intentions are. That there might be better relative value available for purchase now in no way removes capital losses, the only lose when you sell line is wrong.

It's classic bear market spin, I have read about it in many places concerning previous phases and am not reading and experiencing for myself for the first time. When the tide is rising the focus is on the hot tip and when it's falling it's 'stay the course' until the market can once more bail out those who add little value, or who actually destroy it.

Unfortunately Andrew , you are 100% dead right

 

[Sunfish]

I don't keep score daily so last night I did the calcs from Dec 31st.

At it's worst on Jan 22nd I was down something like 65k. Today I should be back even, even though the XAO is still 800 pts down (my guess on open)

Funds ain't shares any more'n an LPT is a house.

 

[willair]

Yesterday he cracked us both up by starting with this comment ... " We have a negative return but it's not as negative as some other planners client portfolios"

I'm sure that the comparision would make anyone smile why bother if no- 113 on his clients list has lost more cash then you,in order for that to be effective you would want the money invested measured against your long-term Goals and the value at 9.30 today,either way you have lost Money no matter have many sideline jokes the F-P spins,the purpose of setting goals if to achieve them,after all Who's money is it in the first place..
..willair..

 

[VYBerlinaV8]

My shares are also down, but who cares? I don't anticipate ever selling them, and they've done extraordinarily well over the past few years anyway. The yield seems to still be there (I reinvest it all automatically anyway), and I currently don't plan to access any equity or yield for personal use for another 15 years or so anyway. It's the long term that counts, and in the past 7 years since holding shares I've made good $$ - another 15 years and I'm sure I'll end up in front!

 

[Brenda Irwin]

My shares are also down, surprised not.
I am anticipating having to pay tax next year so I am selling out the higher priced bundles and claiming a loss which should offset some of the income I have elsewhere. Does this sound reasonable? My average shareprice is then lower and should recover that much quicker.

 

[BillC]

property trusts are the same as managed funds You dont control them and
whatever happens the fund managers and the financial planners still get there commission
On the other hand Direct Property Direct Shares and Self Funded Superanuation is controlled by the owners
Read study and get educated on property shares etc and you will then control your own destiny
And if you lose money you can only blame yourself

 

[sue78]

i have turn a blind eye on the market for awhile.

 

[BayView]

I don't keep score daily so last night I did the calcs from Dec 31st.

At it's worst on Jan 22nd I was down something like 65k. Today I should be back even, even though the XAO is still 800 pts down (my guess on open)

Funds ain't shares any more'n an LPT is a house.

Doesn't it p!ss you off that the shares are up and down like this?

$65k DOWN?? Forget that.

My idea of investing is to steadily make money in growth assets that provide income, tax advantages, cap growth, value adding and so on.

I'm continually reading here about stuff like; "my shares are down by $X; how bout yours?". "yeah; I dropped $20k but overall I'm only down $2k for the year...".

It all seems like gambling to me.

 

[Sunfish]

It all seems like gambling to me.

It isn't really. But the more sell-offs you survive the stronger you get. Intellect tells you now that you will hold your property through a slump, but slumps don't happen in a vacuum. There will be a reason and you will be reading about it in the papers every day. It takes strong nerves to hold and fear will beat many who are untested.

At least I'm tested, and think I may be able to retire solely on my investments, both share and property, even though they are a little skinny.

 

[evand]

Lucky there isn't a big neon sign on top of your IPs with 'todays value' on it. You could be in for a shock.

Doesn't it p!ss you off that the shares are up and down like this?

$65k DOWN?? Forget that.

My idea of investing is to steadily make money in growth assets that provide income, tax advantages, cap growth, value adding and so on.

I'm continually reading here about stuff like; "my shares are down by $X; how bout yours?". "yeah; I dropped $20k but overall I'm only down $2k for the year...".

It all seems like gambling to me.

 

[The Y-man]

Lucky there isn't a big neon sign on top of your IPs with 'todays value' on it. You could be in for a shock.

No, you need 3 figures: Offers, Bids, Last

If you were really fancy, you'd also have a High and Low figure too

Cheers,

The Y-man

 

[chilliaa]

I've seen many posts comparing the virtue of Shares VS IP's. Not wanting to open the can of worms again ... but I can't help but share (pardon the pun)this one.

My wife and I went to see our Financial Planner yesterday (1/4ly review) It is always fun giving him a hard time by comparing our IP growth to our managed funds growth... or lack there-off

Yesterday he cracked us both up by starting with this comment ... " We have a negative return but it's not as negative as some other planners client portfolios"

We just lost it ...

But fortunately for us ... the managed funds are a long term investment so we only lose if we sell out ... But it was fun none the less

Yes its cracking you up because property is still very bullish. Will you still be 'cracked up' when property turns in its cycle, or are you one of the believers that state that property 'always goes up 10% a year'

 

[chilliaa]

For what its worth, my shares purchased between Aug 07 and Dec 07 are down around 25%, shares purchased from Jan 08 to now (Feb 08) are probably down around 5% or so. Maybe i have a morbid personality but i feel happier when i see prices declining than when they are rising.

 

[alexlee]

Yes its cracking you up because property is still very bullish. Will you still be 'cracked up' when property turns in its cycle, or are you one of the believers that state that property 'always goes up 10% a year'

Over the long term, I do believe that property goes up 7-10% a year on average. Roughly inflation + population growth. There will be down periods, especially given the strong boom we've just seen / are seeing.
Alex

 

[chilliaa]

Over the long term, I do believe that property goes up 7-10% a year on average. Roughly inflation + population growth. There will be down periods, especially given the strong boom we've just seen / are seeing.
Alex

Yes quite agree on that comment, but 'over the long term' can be a very long time with subnormal returns incurred in the meantime.

 

[casper007]

Yes its cracking you up because property is still very bullish. Will you still be 'cracked up' when property turns in its cycle, or are you one of the believers that state that property 'always goes up 10% a year'

Put it into perspective ... would you laugh if your bank manager said ... the $10k you have in your term deposit which is for your childs Uni fees ... just dropped to $8.5k ... but Hey ... don't worry cause the guy in here earlier lost $4k on his??

I' am probably the dummy as I am still with both my FP and his recommended managed funds But then again ... I do have a sense of humour