US Stocks
- Thread starter steveadl
- Start date
Thanks for the video...! scary stuff. I'll keep an eye on it..
I'm opening positions in some higher PE stocks at the moment, but that ones too high even for me!
If you are trading, there mightt be opportunities. High PE's had a bit of a come back recently, whether the risk on trade continues will depend on the success of this trading strategy. Personally i think its too close to the end of QE2 to be placing trading 'risk on' positions that are longer than very short term (and for a good indication of risk on trade just watch the AU$).
Also i think this trading position is becoming stagnent. Looking at the market tonight, it doesnt feel 'right'. The market is not moving as it should, so i wouldnt be initiating a trading position.
If one is creating investing positions i would be even more careful.
The high PE stock performance is more influenced by the risk on/risk off than by the intrinsic valuations of the underlying companies.
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For those following US stocks, and even for australian stocks for psychological reasons, keep a close eye on the S&P. The 200 day moving average is 1265, this is an important resistance level.
If this is broken on volume, then turbulence could increase.
Why do i care about this as a value investor, because if psychological fear increases (and after the GFC there is increased focus on technical readings), good opportunities to place longer term positions could arise.
If this is broken on volume, then turbulence could increase.
Why do i care about this as a value investor, because if psychological fear increases (and after the GFC there is increased focus on technical readings), good opportunities to place longer term positions could arise.
phew... posted this on 03-05-2011, 01:09 PM.
Sold it for almost $49/share
Checked today what the stock price was:
$28.85 !!!!
Took an intial position in Bank of America last week at $10.7 just before it got nicely wacked
Not adding to this position yet even though its dropped further.
Bought Citigroup yesterday at $38, i think this one could be a 3 bagger+ over the next 10 years, but will have to copp volatility in the short term. Interestingly Citi has been making profit for last 4 quarters and its share price is significantly below net tangible assets and way below 'book value'.
Added to GE with another purchase, this is the third purchase now, 1st at around $11, second at around $14, 3rd purchase at $18.2
Also bought positions in Teva Pharmaceuticals and Pitney Bowes (low growth stock but high dividend which should be safe).
As well as Deere & Co (the makers of farm equipment). Been wanting to get into this stock since the start of the year but was waiting for a pull back. Good sector to be in (indirect agricultural play), this company is a cyclical company so cant sit as a 'buy and hold' but so long as agriculture is doing well, DE should do well. Forward looking earnings guidance is good. Note that DE is highly geared, in a low US interest rate environment this works in DE's favour, but watch out if interest rates start to rise rapidly (note that the current Fed speak currently indicates that interest rates should be on hold until 2012)
Transferred another $70k from my australian account to to the US account today to take advantage of the high exchange rate (US$1.073), leaving this in US$ cash.
Not adding to this position yet even though its dropped further.
Bought Citigroup yesterday at $38, i think this one could be a 3 bagger+ over the next 10 years, but will have to copp volatility in the short term. Interestingly Citi has been making profit for last 4 quarters and its share price is significantly below net tangible assets and way below 'book value'.
Added to GE with another purchase, this is the third purchase now, 1st at around $11, second at around $14, 3rd purchase at $18.2
Also bought positions in Teva Pharmaceuticals and Pitney Bowes (low growth stock but high dividend which should be safe).
As well as Deere & Co (the makers of farm equipment). Been wanting to get into this stock since the start of the year but was waiting for a pull back. Good sector to be in (indirect agricultural play), this company is a cyclical company so cant sit as a 'buy and hold' but so long as agriculture is doing well, DE should do well. Forward looking earnings guidance is good. Note that DE is highly geared, in a low US interest rate environment this works in DE's favour, but watch out if interest rates start to rise rapidly (note that the current Fed speak currently indicates that interest rates should be on hold until 2012)
Transferred another $70k from my australian account to to the US account today to take advantage of the high exchange rate (US$1.073), leaving this in US$ cash.
Hi I.V. you still seem active in the US market.
Do you need to lodge US tax returns (ITIN or ETIN) when investing/trading over there?........or, is it only declared (dividends, sales profits/losses, etc) in the Aus tax system? If you care to share, also what entity do you trade in from here? Is the entity here or in the US?
Sorry if it's been answered elsewhere in this thread...........a little lazy to re-read the whole thing.
Do you need to lodge US tax returns (ITIN or ETIN) when investing/trading over there?........or, is it only declared (dividends, sales profits/losses, etc) in the Aus tax system? If you care to share, also what entity do you trade in from here? Is the entity here or in the US?
Sorry if it's been answered elsewhere in this thread...........a little lazy to re-read the whole thing.
it's all aussie unless you're using an LLC/CCorp.
aussie entity + aussie broker = aussie tax return.
thats excactly right.
I use an international bank as my broker, at the end of the year as part of the service they provide a tax P&L for my accountant. Breaks everything up into the relevant items that go into an australian tax return.
Australian dividends going into an australian $ account, US dividends into a US$ account.
Pretty simple.
They have recently increased the charge to move currencies from 15 pips to 25 pips but this is against the wholesale rate so its still pretty good (as opposed to a retail bank that charges several hundred pips)
another $40,000 transferred into US$ at $1.0810 today.
another issue i will raise with regards to the US market, their dividend payout might be pretty crappy in comparison with the australian market, but it does provide one great benefit, a low profit payout leaves funds available for share buybacks and capital appreciation (through buy outs of other companies, so long as this is done in an intelligent manner).
So why is this important for an australian investor?
because no matter how much profit is made, if its a capital gain, the maximum future tax that is liable is rouglly 25%. Now compare that to to income tax scales.
Thats why my 'spread' is between australian dividend paying stocks (which i pay tax at the marginal rate, after franking credits), and international shares, which will attract (hopefully) capital gains tax rates.
So why is this important for an australian investor?
because no matter how much profit is made, if its a capital gain, the maximum future tax that is liable is rouglly 25%. Now compare that to to income tax scales.
Thats why my 'spread' is between australian dividend paying stocks (which i pay tax at the marginal rate, after franking credits), and international shares, which will attract (hopefully) capital gains tax rates.
That's because US taxpayers get double-taxed on dividends..while we get imputation credits
You're right about dividends, though I do think they have it right with the quarterly payout and fractional share issues.
I invest in US stocks for cap. gains. If it's dividends someone is after they'd be much better off with higher yields in Aus. as well as the franking credits.
Been ridiculously busy last few months with new business start up so haven't been following the markets at all save for quickly going through the monthly newsletter I subscribe to. Currently waiting up for market to open to potentially buy into a stock that got slammed last night by 30%. Just checked my portfolio and currently beating the S&P by 1.4% - nothing too exciting.
another $30,000 at $1.092 and $30,000 at $1.102
reducing australian exposure proportionately
Anyone planning on buying stocks if they sink based on the outcome on august 2nd? Perhaps some good bargains ? I've transferred some money tonight. Will keep an eye and pull the trigger if something looks interesting and a good candidate for a Buy...
ive had to reverse some of these last currency movements, exiting at a loss.
This market is too dangerous, look at the forward indicators they are pointing downwards (ecri weekly leading index, and other forward looking manufacturing and service industries).
I'm not exiting US stock positions (i like what i have accumulated), but i am not prepared to borrow in AU$ to invest in US$ cash (and wait for deployment into US stocks) with this sought of volatility.
I am also not prepared to borrow in US$ as the US$ is being shorted big time and the AU$ is trading above fundamentals.
Basically reducing risk and leverage.
And refer to this post:
http://www.somersoft.com/forums/showpost.php?p=816361&postcount=59
This market is too dangerous, look at the forward indicators they are pointing downwards (ecri weekly leading index, and other forward looking manufacturing and service industries).
I'm not exiting US stock positions (i like what i have accumulated), but i am not prepared to borrow in AU$ to invest in US$ cash (and wait for deployment into US stocks) with this sought of volatility.
I am also not prepared to borrow in US$ as the US$ is being shorted big time and the AU$ is trading above fundamentals.
Basically reducing risk and leverage.
And refer to this post:
http://www.somersoft.com/forums/showpost.php?p=816361&postcount=59
Anyone still playing in the US?
Nokia is looking pretty appealing atm, low valuation, still paying strong dividends.
Whilst their market position isnt what it used to be here. It is still relatively large and they own a hell of a lot of intellectual property.
Thinking of buying 1000-2000 shares soon and sitting on them for a few years and sit back and take the dividends
Nokia is looking pretty appealing atm, low valuation, still paying strong dividends.
Whilst their market position isnt what it used to be here. It is still relatively large and they own a hell of a lot of intellectual property.
Thinking of buying 1000-2000 shares soon and sitting on them for a few years and sit back and take the dividends
Most of my holdings were sold in the latest downturn.
Its what enabled me to weather this recent storm relatively well.
Now just 10% US exposure and 90% australian exposure.
After the recent pull back Australian shares at the moment could represent better buying based on high dividends, but this is just my opinion.
In a low growth environment dividends could play a larger part of total portfolio performance.
Its what enabled me to weather this recent storm relatively well.
Now just 10% US exposure and 90% australian exposure.
After the recent pull back Australian shares at the moment could represent better buying based on high dividends, but this is just my opinion.
In a low growth environment dividends could play a larger part of total portfolio performance.
