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Aust market suffers biggest lost in 6 years

Discussion in 'Shares' started by Simon Hampel, 2nd Aug, 2007.

  1. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Last edited: 17th Sep, 2016
  2. Alan

    Alan Well-Known Member

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    Hi Sim.

    I'm glad someone else noticed that drop......I thought it was just me!! :eek: :D

    Every now and then I look at a Chart of the ASX200 that doesn't just cover 1 or 2 years but at least 20. I mentally fit a trend line through the result and it's just my way of trying to keep some historical perspective about what is happening instead of getting carried away with the short term.

    At the risk of stating the bleeding obvious, the last 3-4 years has seen some spectacular rises that are waaaaayyyyyyyy beyond any long term trend!!

    I don't even pretend to understand all the factors that cause massive rises or falls about these long term trends but personally I'm fairly comfortable that a reversion to these long term means is usually inevitable.

    A 10% correction or so now may be just what is needed to take some pressure out of the situation. A mild licking of wounds for some will be far better than a large scale panic that could cause much more serious consequences.

    As an investor, I'm glad my primary MF has had significant cash holdings of late. ;)

    PS. DOW just closed UP 150 points. Volatilty can be a beautiful thing........time will tell.
     
  3. crc_error

    crc_error The Rule of 72

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    Interesting - funny how the media likes to sell newspapers!!

    Market up 30% for the last 12 months.

    Market down 3% in one day..

    Media makes out like we all suffered some big loss!! lol Why don't they report the facts... last 12 month returns dropped to 27% instead of 30%?
     
  4. Alan

    Alan Well-Known Member

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    Yes.......generally agree. But then, the Market only reached those points if some were Buying. To them, if Sold, the drop was very real.

    Market up about 100 points at lunchtime. Who cares if it rises anymore? Just keep going up and down! :D
     
  5. MJK

    MJK Well-Known Member

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    Alan,

    Do you know how much NI was in cash before the recent falls?

    MJK:D
     
  6. Alan

    Alan Well-Known Member

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    I can't remember now MJK, but 30-40% must have be in the vicinity? :)
     
  7. Alan

    Alan Well-Known Member

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    Hi MJK.

    Just checked..........32.4% at end of June.
     
  8. crc_error

    crc_error The Rule of 72

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    prehaps they were shopping in the last few days?
     
  9. MJK

    MJK Well-Known Member

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    I just bought some more NI at $1.13 wish I had waited a week or two but its very hard to time a purchase when the price is down because it will bounce back no doubt.

    I like the was NI takes advantage of volitility we are experiencing. Good to know they had plenty of cash in reserve.

    MJK:D
     
  10. redrover

    redrover Well-Known Member

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    If NI was +1.54% on 20 July then down -4.55% on 1 August, i.e. about -6% how can it drop that much percentage wise if it is so much in cash. Surely the correction would make allowance for a cash holding of about 35% (which presumably does not drop in value) and a drop in unit prices would only be about 2-3%???!!!:(
     
  11. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    Don't forget that the Navra fund would be buying as the share prices drop - thus compounding the losses in the short term if the market continues to fall sharply. It's on the upswing that the fund will come back strongly. This is expected.