Super fund portfolio in this current climate

Is having super fund in cash at the moment a bad thing ? I am wondering with the AUS going down what are the options to change over to ?
Thanks.
 
Is having super fund in cash at the moment a bad thing ? I am wondering with the AUS going down what are the options to change over to ?
Thanks.
Nothing wrong with cash in the short term while you wait for this slow-motion train wreck that is the world economy to show what has been oversold.

Our exchange rate V the USD is something/nothing. If you take the pragmatic view that you are in Oz, your property is here and you intend to retire here [an assumption] then simply keep your super in A$ denominated assets. If you think of yourself as a "world citizen" then look at our $ compared to the trade weighted index. I think you'll find we are nearly holding our own. The US is just perceived as a safe haven ATM and is overvalued.

You are allowed to buy gold into super and that is a real safe haven which will protect you from any perceived currency risk. People just don't think that way though generally.

Edit: If you were to buy into an o/s money market fund, the management fees incurred would be greater than the interest received.
 
We're holding ours fully in cash ATM while waiting to see what the share market is doing.

Is it a good time to buy, or do you believe there will be more fallout?

Shares looking at are:

wow
rio
bhp
cba
wbc
csl
coh
qbe
ccl
 
If that question was directed to me: I don't believe in catching falling knives.

The only thing I have bought in recent months is a little of the gold etf and some physical.
 
If that question was directed to me: I don't believe in catching falling knives.

No - just after some advice from those who know as I caught a falling knife last time around in GFC1 with personal money, and still have the bloodstains.
 
No - just after some advice from those who know as I caught a falling knife last time around in GFC1 with personal money, and still have the bloodstains.

Buy stocks of companies whose business you understand.

The list of companies you provided in your earlier thread..do you understand how each of those companies make money? Do you believe those companies will be around in 15-20years time?

To answer those question you need to consider how easy it is for a competitor to start competing with the company. Economics of the industry in which the business operates. For eg. there is a very good chance in 15 years supermarkets will still be around. Banks and Insurance are another example. Whereas your startup biotech or some fancy financial institute selling complex financial instruments (loan products) might not be around.

Next once you are satisfied with long term prospects of the company. Look at it's 10yrs history (at least) and see how the profits and dividends suffered during a recession and don't just focus on the share price. A lower share price might provide you with a really good opportunity to buy into a quality company.

Independent thinking is what is important when investing. Following the crowd rarely makes you rich as history has shown.

Cheers,
Oracle.
 
No - just after some advice from those who know as I caught a falling knife last time around in GFC1 with personal money, and still have the bloodstains.

That's the thing. Nobody knows what the share markets will do. In this environment IMHO you need to protect your capital. I'm in the share market but have been selling down my holdings as the market rises to lower my exposure.
All you can do is follow the trend in the short term unless you are a more sophisticated trader and can spend all day managing your stock.
One thing that looks very likely is interest rates on savings and bonds will be much lower in the near future.
Probably why people are piling in to Telstra shares for the fully franked .28 cent dividend.
I must admit I held on to mine even though they reached and exceeded my price target.
 
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If that question was directed to me: I don't believe in catching falling knives.

The only thing I have bought in recent months is a little of the gold etf and some physical.

Gold and Telstra seemed to be the only green on my screen today
 
What's your home address?
Ned, [how apt] I have a big house, a big yard and a big dog, how good are you at hide 'n seek?

I also have a safe, as well as a Toyota remote which DOESN'T start my car on my dresser [no the car is in the garage, silly] and an old old mobile phone beside it. Is the safe a dummy too?

Actually, I use the Perth Mint Certificate program. I can give you their address if you like. :D
 
We're holding ours fully in cash ATM while waiting to see what the share market is doing.

Is it a good time to buy, or do you believe there will be more fallout?

Shares looking at are:

wow
rio
bhp
cba
wbc
csl
coh
qbe
ccl
I would add NCM & WPL.
I wouldn't touch any banks, we've seen how fragile they really are. I'd rather buy facebook than a bank (not a recommendation for FB). I've been buying high yielders (foreign), energy & gold stocks.

Too late to move into cash, I wouldn't be selling out now, only to join the sell low / buy high brigade who then complain the market is 'rigged'.
 
Great comments thank you all.
Cash for a little longer then !

Yes, the market is news driven at the moment. At some point though if news continues to drive the market down then some stocks will be looking cheap and they will be hard to resist.
My portfolio lost big yesterday but has regained those losses and then some this morning. Wonder where we will be at end the day.
 
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