So far I have not much luck in the stock market, a bit of hit & miss, due to lack of inside knowledge (compared to fund managers) & time. I am thinking of putting most of my money in index funds such as Vanguard or SPDR ASX 200. Just wondering if the company goes broke, will I lost all my money. If this is the case then by putting all the money in an index fund it defects the purpose of diversification so not to put all the eggs in one basket ! Any comment please.
share diversification - what if the company goes broke ?
- Thread starter oasis1frog
- Start date
Look, I'm sure forum-ites here will advise you out of the goodness of their hearts, but this is a property forum not share advice forum. I'm sure there are better places to post these questions that are specific to share/index trading.
I'm not intending to be awkward, but I just get frustrated when I log on to read investment property posts only to find more and more share topic threads creeping in.
Others may disagree with me and that's fine. I just needed to state my views.
Martin
I agree this is mainly a property forum, but it will be VERY BORING if it only talks about property & property. I think the aim of this forum is to self help forumites to achieve financial independent. Share & property are the two main investment vehicles for most people, it is silly not to expect share related threads on this forum, as long as we keep the number to a small %. Nobody forces you to read the thread, simply don't open it. There have been many threads about many things on this forum, did you make a fuss when other threads appeared ?
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Hi oasis1frog,
The ASX 200 is down about 1600-1700 points since last Nov (2007) or approx 25 %. Right now ca$h is king. There are many good value blue chip stocks however the voting machine that is the stock market is still under the influence of the lemmings.......it may fall further as they continue panic selling on the pandemonium that the media creates.
If your view is long term (2-5 years) look at listed investment companies such as Australian Foundation or Argo Investments (who themselves invest in blue chip stocks).
Personally, only my SMSF (very long term view) has a moderate share portfolio at present. I'm happy with term deposits at the moment and waiting for the sentiment to turn before trading/investing in the stock market again thru our family trust. There may also be some property opportunities later this year to take advantage of, especially if interest rates make the 10 % mark. This may see a similar psychological reaction to property as the herd has evidenced in the stock market.
Investors who do not understand (or have the patience for) the property growth cycle may jump ship as re-financing or fixed term investment loans fall due. I have lived thru the 17-20 % interest period and survived. Those who do not learn the lessons of history are destined to fall victim to repeating it. At present I believe there is too much uncertainty to be aggressive in property acquisition and shares. I'm adopting a wait and see approach whilst earning 7.2 % with the bank, which is still more than the highest of my fixed interest property loans.
The ASX 200 is down about 1600-1700 points since last Nov (2007) or approx 25 %. Right now ca$h is king. There are many good value blue chip stocks however the voting machine that is the stock market is still under the influence of the lemmings.......it may fall further as they continue panic selling on the pandemonium that the media creates.
If your view is long term (2-5 years) look at listed investment companies such as Australian Foundation or Argo Investments (who themselves invest in blue chip stocks).
Personally, only my SMSF (very long term view) has a moderate share portfolio at present. I'm happy with term deposits at the moment and waiting for the sentiment to turn before trading/investing in the stock market again thru our family trust. There may also be some property opportunities later this year to take advantage of, especially if interest rates make the 10 % mark. This may see a similar psychological reaction to property as the herd has evidenced in the stock market.
Investors who do not understand (or have the patience for) the property growth cycle may jump ship as re-financing or fixed term investment loans fall due. I have lived thru the 17-20 % interest period and survived. Those who do not learn the lessons of history are destined to fall victim to repeating it. At present I believe there is too much uncertainty to be aggressive in property acquisition and shares. I'm adopting a wait and see approach whilst earning 7.2 % with the bank, which is still more than the highest of my fixed interest property loans.
Mystery is right and, fwiw, I agree with him.
See - About the forum.
I don't see shares mentioned anywhere on that page. Though property gets mentioned several times.
M
It is possible for a fund manager to go under - but not from share movements as much as mismanagement or some form of white collar crime.
Cheers,
The Y-man
If you want to read only property related stuff, what are you doing in the coffee lounge....????????????
Well, I checked the forum location before I posted because I thought exactly the same as S...T. How could he check if it had already been moved! There is no indication that it had been moved.
Go into the general section of the forum. Scroll down a little and you will see reference to this thread and that it has been moved.
M
There was water in the pool mate...... Maybe it was only filled just before I looked though!
If that is the case, the complaint was justified, but should have been about the location of such posts within the forum. I understand that even then, that the 'new posts' button (which is what I always use) doesn't discriminate - it shows everything - but we can't have everything exactly as we want all the time
If that is the case, the complaint was justified, but should have been about the location of such posts within the forum. I understand that even then, that the 'new posts' button (which is what I always use) doesn't discriminate - it shows everything - but we can't have everything exactly as we want all the time
And to answer the question, I think Y-man has it right. I would also point out that 'lack of inside knowledge' probably isn't the reason you aren't having much luck. The market is down a lot at the moment, so not many are having much 'luck'. However, if you have developed a good strategy, and stick to it, then your 'luck' should come! You could do your own index fund it you want, by buying stocks direct, but it would be less efficient if you want to add small $ amounts to it on a regular basis.
S_T,
The original thread was posted in "Property Investing - General" area ... it was moved to Coffee Lounge by Moderator, so before you have a go at me ... check your facts.
I don't have a problem with it being in Coffee Lounge as it's the common sense location for the topic, ... I just couldn't see the sense in it being in the IP section, .... and for someone else who posted above who said ... "If you don't want to read it don't open it", .. well I don't usually ... I went in to post my response.
Martin
Hi Y-man, Michael & others who kindly responded to my query, thank you very much.
As to where this thread was first posted, I did not know one could choose which sub-forum the thread would appear (always wondering how threads are grouped into sub-forums, well, learn something new everyday).
As to where this thread was first posted, I did not know one could choose which sub-forum the thread would appear (always wondering how threads are grouped into sub-forums, well, learn something new everyday).
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