sharemarket good time to buy?

[seank]

Most of my money is invested in property, however I have spare cash 10k, and the sharemarket is looking more and more attractive.
I'm thinking about the following shares
bhp/woolworths/westfield/suncorp/caltex


Are there any other property investors thinking the same?
or are we waiting for more falls?

May be a good way to build up another deposit

 

[Goyco]

Most of my money is invested in property, however I have spare cash 10k, and the sharemarket is looking more and more attractive.
I'm thinking about the following shares
bhp/woolworths/westfield/suncorp/caltex


Are there any other property investors thinking the same?
or are we waiting for more falls?

May be a good way to build up another deposit

Could be

Old Jewish proverb " 1/3 property, 1/3 business ventures ( shares qualify) and the rest in cash "

dunno but they have been around a long long time

hope this helps

cheers

 

[jingo]

May be a good way to build up another deposit

Bank interest looks an attractive way to build up a deposit at the moment - with no risk of loosing your capital.

 

[crc_error]

look at st george bank, yield is 10% but it will be less today as the banks will rally due to the US overnight

 

[WashingtonBrown]

Was a better time to buy yesterday!

Regards

 

[pjparker]

I've bought in a couple of times this week. I was in the same boat, had a spare 20K in a LOC and just couldn't resist. I love to buy when everyone else is negative. Don't follow the herd.

NAB, QBE and WOW. Have taken a punt on AFG, only 1k just to see what happens.

Today's rally has been good to me but I'll keep these long term. Will be very interested to see the effect the reserve's actions in the US will have over the next couple of months, especially on financials.

Jump in I say, the water is warm.

 

[crc_error]

good view parker, the time to get in is when everyone else is selling.

When readying Keith interview, he was buying up high yielding banks in 2003 when they were out of flavor.. today he is retired!

 

[lenojd]

look at st george bank, yield is 10% but it will be less today as the banks will rally due to the US overnight

how do you calculate the yield for shares?

 

[MarkB]

It's the inverse of the P/E Ratio.

Eg. P/E Ratio of 10, yield is 1/10 = 10%

P/E Ratio = 13, yield is 1/13 = 7.69%

M

 

[steveadl]

Not in a position to buy myself but can't help but think banks would be good buys at these levels. Also like Westfield.

But then again, I have never had much good fortune with shares over the years, so what would I know!

 

[crc_error]

how do you calculate the yield for shares?

comsec also publishes the forcasts of dividends under company information, so its good to look at future forcasts as well. No point in having a company paying a high dividend today, and 1/2 next year. ZFX was a perfect example.

Also look at the history of dividends, to see they are paid on a regular basis and are increasing each year.

Note that comsec will list the yield ie 7% but you need to consider the 30% tax that has been paid on your behalf, so the total yield will be 7 x 1.3... providing the stock pays 100% franked dividends.. some may pay 50% franked meaning 1/2 the tax has been paid.. others pay unfranked dividends, where no tax has been paid.. the comsec site is quite good to get all this information.

 

[sash]

I think that the recent falls in bank stocks is not the last.

There maybe still some more surprises.....I am still waiting in the spectator seat.

 

[crc_error]

Not in a position to buy myself but can't help but think banks would be good buys at these levels. Also like Westfield.

But then again, I have never had much good fortune with shares over the years, so what would I know!

prehaps you view the purchases in a to short term time frame? treat share purchases like a property purchase, with a 5 year+ time frame, and I'm sure your fortune will change.

 

[MarkB]

Note that comsec will list the yield ie 7% but you need to consider the 30% tax that has been paid on your behalf, so the total yield will be 7 x 1.3... providing the stock pays 100% franked dividends..

Crc you inadvertantly dropped a 4 out of that ratio.

I think you meant to say 1.43 (to get it back to 10% pre-tax / 7 x 1.43 = 10)

M

 

[crc_error]

yep, you are right!

 

[The Y-man]

yep, you are right!

Must have been a crc_error

Cheers,

The Y-man

 

[pjparker]

If I wasn't in a position to buy, I would certainly look at increasing or at least starting salary sacrificing into Super, as long as you have your super in shares. If you are a lower income earner, do it after tax and take advantage of the co-contribution. These negative times are great ways to top up. Remeber to think like property, long term. Studies I looked at at Uni years ago showed that if you had sunk all your money into shares just before the big crash, you would have still made heaps of money in the long run, especially if you DRP all your income.

CHeers Paul.

 

[s_t]

Not in a position to buy myself but can't help but think banks would be good buys at these levels. Also like Westfield.

But then again, I have never had much good fortune with shares over the years, so what would I know!

Your situation is in some respects what call options were designed for - gives you the right to buy at current levels sometime in the future (ie. when you have the cash!). Unfortunately such options won't be particularly cheap atm, because of the high volatility.

 

[steveadl]

prehaps you view the purchases in a to short term time frame? treat share purchases like a property purchase, with a 5 year+ time frame, and I'm sure your fortune will change.

Very true.

Your situation is in some respects what call options were designed for - gives you the right to buy at current levels sometime in the future (ie. when you have the cash!). Unfortunately such options won't be particularly cheap atm, because of the high volatility.

Good point ST. I did dabble in these a bit many moons ago. Might be an idea to have a look again.

 

[ffc1883_1996]

Time to buy - dipping toe in water

In February, wife and I started to buy $5k per month of units in an income focused managed share fund.

This is our first stock market investment - using equity harvested from Melbourne's 2007 property value growth. With our extremely limited knowledge of shares, dollar cost averaging makes sense to us.