Which shares to buy now?

Check out Peter Schiff's book "Crash Proof". Way back in 2005- 2006, he predicted the subprime and housing market causing a crash and nobody in CNN, FoxNews, CNBC believed him. In fact lots of 'financial experts' laughed at him saying he is talking nonsense.

September 2006.

http://au.youtube.com/watch?v=IU6PamCQ6zw

http://au.youtube.com/watch?v=r5ifr0iskSc&feature=related

The question is, do you think Australian properties will follow USA's prices? We have been following their price increase for many years, but have not joined their property slump yet? (but maybe this recession and stock market dive in Sept - Oct 2008 will make a dent)
 
and its this dilema with ylds that effects all long term investors.
What do you do?
On one hand you have great ylds on shares, but how sustainable are the ylds.
On the other to achieve these kind of ylds you have to have balls of steel to leap into the market regardless of all the doomsayers around (and the most maddening part about this is that at least in the short term they will be correct relative to your investment, as its nearly impossible to hit the bottom of a market low).

Ive taken the simplistic (stupid?) approach of just slowly allocating money into the market as the market corrects.

Has this approach worked so far? well based on 2008 results so far definately not!!!. To achieve capital break even, i need the ASX to head back up to around 5000.

On the other hand, i have picked up a gross income stream of around $65k p.a so far in future dividends which should grow over time.
 
Sunfish said:
yes, You feel a proper goose when you buy a stock for half a dollar dividend and it promptly drops three. Been there!
Click to expand...

Yep, that's hapened to me more times than I care to remember........now some Banks are paying divs again soon........have I learned my lesson :)

dm
 
Sunfish said:
As I remember, you were quite agro when I doubted your wisdom at the time.
Click to expand...

From memory you were stating that its far better being in resource and commodity stocks than banking/financials.

The difference now is that whilst i am sitting on capital losses, i am achieving a very good dividend yld. That yld becomes 'locked in' at the time of purchase. Sure if you wait until you have strong confirmation that the market is going back up, you might feel happier as you see share prices rising, but you cannot achieve as effective income stream.

I always invest for income stream, usually over decent periods of time this has translated into good capital appreciation as well.

I have used this strategy with property to good effect and with shares, but its a long term view.
 
Welcome said:
I'm eyeing off OIF when the trend changes direction.... about an 18% yield! :D
Click to expand...

Is this the orchid investment trust. From memory someone mentioned this trust in Somersoft a few months ago.
I had a quick look through its financial statements and management agreement and didnt like what i saw.
Its a very high leveraged play on property (i think their debt is something like 60% or higher). Their managment agreement also stipulates that the trust mananager (orchid) also receives a commission whenever they refinance debt:eek:

This could well be the type of company that people are refering to when they buy based on high dividends only to see those dividends evaporate.
 
Sunfish said:
I was about to say "One of us is using faulty data." but I realised that I had neglected to download Wednesday's data.

I was always aware that it wasn't a genuine daytrade but I was willing to let it pass to the keeper. So it became a trade over a few days and it was near perfect.... just about the bottom, just about the top. :D

That good and only a few of hundred profit. Sportsbet is offering $1.10 on an Obama victory. That's $100 on $10k on a "sure thing"

Sorry Josko, I'm not trying to give you a hard time. :D :D
Click to expand...

Hi guys, been away.

No it wasn't a day trade. It has been up one and down the next for roughly a week so i went for it, against hubbies advice. I had a whole 20 shares! he he. :D

Wish I had have put more in. Thinking I will buy today or tomorrow again and stick the whole lot in again. Actually I forgot to take out the Brokerage fee of $30 for both trades.:rolleyes:

PS: It actually sold at 76.92 or something. Come on I'm at work and didn't think someone would be analyzing it but I should have known on SS!

Regards JO
 
In answer to the title question, someone obviously thinks this one:

qgcqm6.png


I believe that's AGL trying to do a takeover. That one bid is for over $4.5bn (wonder what the brokerage would be).

GP
 
Well I bit the bullet and bought some WDC today - I think a pretty secure play and currently on a yield of 7.5% which obviously could go down somewhat, but I don't think it would slide very far.
 
Hi Steve,

well done with your purchase... it should be a good long term investment, however in the shorter-term it may go down a little (too much negative sentiment out there atm), but wouldn't panic too much... the yield isn't bad (although not franked, but still good) as WDC is known to constantly expand/grow...

Cheers,

Manny.
 
chilliaa said:
From memory you were stating that its far better being in resource and commodity stocks than banking/financials.

The difference now is that whilst i am sitting on capital losses, i am achieving a very good dividend yld. That yld becomes 'locked in' at the time of purchase. Sure if you wait until you have strong confirmation that the market is going back up, you might feel happier as you see share prices rising, but you cannot achieve as effective income stream.

I always invest for income stream, usually over decent periods of time this has translated into good capital appreciation as well.

I have used this strategy with property to good effect and with shares, but its a long term view.
Click to expand...

and since you explained this to me i have not picked on your for you dollar cost averaging stance....:D
 
manny said:
Hi Steve,

well done with your purchase... it should be a good long term investment, however in the shorter-term it may go down a little (too much negative sentiment out there atm), but wouldn't panic too much... the yield isn't bad (although not franked, but still good) as WDC is known to constantly expand/grow...

Cheers,

Manny.
Click to expand...

Thanks Manny. Only bought a small parcel. I've got some property equity I can tap, but don't really want to leverage into the market just yet, only using cash. Just throwing some spare dollars saved with interest rate falls into the market.

Wish WDC still had their dividend reinvestment program active. Any other suggestions of stocks in the ASX100 I could keep an eye on?
 
wooot. go QGC you good thing. back into multi-bagger territory for this bad boy :D a nice little rose in the field of thorns of my portfolio.
 
Having a great time with RIO...if it hits 75.50 here comes another $200+.

Must be beginners luck. Maybe because I am not share saavy etc. I'm just seeing this as a very basic way to make some small dollars?

Is this where logic can turn to greed and I say: OK let's throw another thousand in this time and it all goes bad?

Regards JO:)
 
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