Which shares to buy now?
- Thread starter The_Bludger
- Start date
not a good day on the market today
have completely lost my nerve trying to pick the lows. Besides perhaps it's not worth trying to catch a falling knife....
hope it wasn't too painful Tess. keep in mind a lot of people prefer not to rationally research the upside and downside equally. This is especially so after many have had a nice run on a bull market... This applies equally to property as shares.
it is also the reason why many on the forum can't bear Steve Keen's view.
The more impartially you read, the wiser will be your investments. DOn't rely on unsubstantiated majority opinions on Somersoft, in the media, the govt, the RBA, or anywhere else. Read widely and read both sides. And above all keep in mind most talk loudly of their wins and are silent about their losses.
not a good day on the market today
have completely lost my nerve trying to pick the lows. Besides perhaps it's not worth trying to catch a falling knife....
Not sure if you're trading short term upswings or trying to buy the lowest price for a long term invest here. Simple moving averages aren't the be all and end all but all the stocks I've looked at still have the red below the blue indicating the trend is still down. I'd rather see somebody miss out on a bit of profit than lose precious capital. Please don't take this as advice, just my observation.
If you are buying for the long term (buy-hold), I would personally buy while the market is down... Buying oversold blue-chip shares that do have good fundamentals, low debt, pay good dividends & have a low Price to Earnings (P/E) ratio... The key is to not follow the herd & go against the trends (ie. Warren Buffet is doing just that, buying up big now while there is negative sentiment in the market... A number of stocks are being sold below their book value, which is amasing...
Cheers,
Manny.
Cheers,
Manny.
Can anyone here see the All Ords falling to a low of 2700? That has been a low that has been tested quite a few years back.
I keep thinking BHP and RIO are cheap (BHP cheap under $30, then cheap under $25, then traded as low as $23.91 this morning). If metals prices keep falling then cheap becomes a relative concept.
I would think of maybe buying Westpac and ASX if I thought the market had bottomed.
P.S. Josko-were you trading RIO?
I keep thinking BHP and RIO are cheap (BHP cheap under $30, then cheap under $25, then traded as low as $23.91 this morning). If metals prices keep falling then cheap becomes a relative concept.
I would think of maybe buying Westpac and ASX if I thought the market had bottomed.
P.S. Josko-were you trading RIO?
RIO has had a low of 65.50 and a high of 66.95. Nope!
""Can anyone here see the All Ords falling to a low of 2700? That has been a low that has been tested quite a few years back.""
I was reading somewhere a few days ago that 2700 would be the turning point, only if it dropped there fairly quickly though, not up and down up and down to get there in 6 months.
I was reading somewhere a few days ago that 2700 would be the turning point, only if it dropped there fairly quickly though, not up and down up and down to get there in 6 months.
Still Nope!
Last Monday was the only day it ever traded below 66 with an intraday low of 62.62. Wed had a high of 73.50.
Some bluddy awful charts!!!!
The Baltic dry index is a good indicator of the amount of seaborne trade, with a forward-looking component because traders book ships in advance.
http://investmenttools.com/futures/bdi_baltic_dry_index.htm
I don't think I've seen such dramatic reversals in charts.
The Baltic dry index is a good indicator of the amount of seaborne trade, with a forward-looking component because traders book ships in advance.
http://investmenttools.com/futures/bdi_baltic_dry_index.htm
I don't think I've seen such dramatic reversals in charts.
wow!
mate if the XAO dropped to 2700 i'd love to buy a 3500 call. what a return!
mate if the XAO dropped to 2700 i'd love to buy a 3500 call. what a return!
Correct me if im wrong but i dont think there was much of a bull market post 87. From memory there was a bear market recovery in early 88, but basically the market went up and down over the next 5 years without doing much at all.
I think structurally we are in a much better situation this time around, i think the USA is going to incur our 87 bull market crash, they have too much debt at all levels of society right up to government (similar to us post 87). They will also have to endure painful micro economic reform if they are to recover long term, this is slow and painful.
If you look at the USA from the 1990's:
their economy basically lept from the development of internet technology (this is good) but after the dot.com bust they relied on the falicy of debt to keep their engines going. Solving debt by throwing more debt around is not the answer.
In regards to the Australian market, i think its the number of people with margin loans that is exacerbating the rot in our market. As the market gradually corrects downwards, more and more people that have been hanging out are becoming forced sellers.
I think structurally we are in a much better situation this time around, i think the USA is going to incur our 87 bull market crash, they have too much debt at all levels of society right up to government (similar to us post 87). They will also have to endure painful micro economic reform if they are to recover long term, this is slow and painful.
If you look at the USA from the 1990's:
their economy basically lept from the development of internet technology (this is good) but after the dot.com bust they relied on the falicy of debt to keep their engines going. Solving debt by throwing more debt around is not the answer.
In regards to the Australian market, i think its the number of people with margin loans that is exacerbating the rot in our market. As the market gradually corrects downwards, more and more people that have been hanging out are becoming forced sellers.
Interesting comment, chilliaa. I wonder how many investors who have used margin loans would actually be left in the market at present??? I would have thought that a good many of them would have been forced out of the market already?
Thoughts, anyone?
Cheers
LynnH
