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Decent correction and your plans

Discussion in 'Shares' started by MJK, 24th May, 2006.

  1. MJK

    MJK Well-Known Member

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    Now that we've had a decent correction, what are people thinking?

    Where are the world markets going?

    Are people wanting to reduce their exposure to Aust Share market in favour of International markets or visa versa.

    Are people wanting to move money into LPTs and other safer havens such as Navra Blue chip Aust fund.

    What modifications to portflios are people making at the moment or are people just holding and waiting it out.

    Has this correction changed your plans? Are you moving money?

    I personally want my dividends reinvested in Property funds to lock income and to reduce market exposure. I also want to increase holdings in Nav Aust retail because I believe it will do better in the looming volitility.

    What are people doing with their direct share investments, their managed funds etcc?

    I'd love to hear what thoughts others have had.

    MJK :D
     
  2. Nigel Ward

    Nigel Ward Team InvestEd

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    Bought some RIO and ABC Learning centres...

    ps. no recommendation, do your own research blah blah blah.
     
  3. MichaelWhyte

    MichaelWhyte Well-Known Member

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    MJK,

    The imminent correction deferred my diversification plans. That is, I saw it coming so decided my dollars might be safer in Navra than in growth funds. Sure I could have pulled it all out, but I'm not as clever as Perky and thought timing the correction accurately was just too hard so decided to ride it out instead of trade it. I also believe there will be more volatility for a while so am planning on leaving the funds in Navra for the time being given I believe they will perform better in a flat volatile market relative growth funds in the same environment.

    I'm also looking at re-entering the Aus residential property market so will need the income from the fund to offset the holding costs on my IP so that was yet one more reason to defer my diversification plans to growth away from income funds.

    All basically dependent on your own situation I guess.

    Cheers,
    Michael.
     
  4. Simon Hampel

    Simon Hampel Co-founder Staff Member

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    More International shares - but not by decreasing exposure to Australian markets, rather, increasing overall portfolio as a result of drawing equity out of property portfolio.

    I haven't changed plans as a result of this correction ... although I am looking to get a bit more exposure to the international resources market (the boom isn't just in Australia you know !!) ... and my plans there have been accelerated by the recent drop in commodities prices making for good buying of oversold stocks. Not sure if I can get the capital together in time to catch it before it swings back up again though - will have to see.

    I have a very detailed plan for the next 5 years stuck up on my wall ... I'm not changing it as a result of a relatively minor correction in the market.
     
  5. Glebe

    Glebe Well-Known Member

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    I'm down $35k from a week back, so I'm going to be staying put and waiting for my LVR to improve before changing anything. Would love to be buying BHP but with my LVR elevated the SANF would be an issue.

    In the next financial year I plan to move out of a few managed funds and into LIC's and LPT's. The savings in fees in the long run will be enormous.
     
  6. MJK

    MJK Well-Known Member

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    Hey Michael, I wish you had told me! :D :D I had just wacked a large sum into some growth funds two weeks earlier. :eek:
    Anyway of my unit based investments I did have near on 40% in Property funds, cash and Navra so I supose I lost 5% of 60% over last few days. I'll hold them for the long term though but I'd like to think we'll get some bounce back.

    MJK
     
  7. MJK

    MJK Well-Known Member

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    You've got to hand it to perky!! :cool: :cool: :cool:
     
  8. perky

    perky Well-Known Member

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    Gee thanks :eek:
    You gotta love this situation. I have been waiting on some more funds to come through from the sale of a townhouse in Robina - we got the price we wanted in late January and settlement has still not occurred (it was meant to happen April 7 :eek: ) - yesterday again meant to settle but now it will be another week. Their broker has stuffed it all up. Meanwhile I am collecting some nice penalties (about $84 a day) . Nice - but what if the sharemarket NOW decides to start its upward swing? Oh well lets hope it waits till the middle of next week :D
     
  9. MrDarcy

    MrDarcy Well-Known Member

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    Me too !!!! I get $180k from a property settlement on Monday (I bought settlement forward 1 week too) so I'm watching the market each day willing it to stay down a bit longer. It hasn't listened to me today ;)
     
  10. perky

    perky Well-Known Member

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    But it is today :D
     
  11. MrDarcy

    MrDarcy Well-Known Member

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    But it's not Monday yet :mad:

    Maybe it will listen again on Monday :)
     
  12. Tropo

    Tropo Well-Known Member

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    If XJO breaks 4980 (down), we may see a drop to approx. 4950 possibly 4900.
    :cool:
     
    Last edited by a moderator: 25th May, 2006
  13. MrDarcy

    MrDarcy Well-Known Member

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    Hmmm, sounds like what will happend just AFTER I buy units ! ;)
     
  14. MichaelWhyte

    MichaelWhyte Well-Known Member

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    Currently trading at 4986 and still falling...

    *edit* Closed the day at 4976.8...

    Should be interesting tomorrow. *endedit*

    Cheers,
    Michael.
     
    Last edited by a moderator: 25th May, 2006
  15. Tropo

    Tropo Well-Known Member

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    I punched wrong number :mad:
    Should be "possibly 4900" NOT "4800" - well ... not yet anyway.
    You are right. Tomorrow it's going to be a very interesting day (Friday).
    Good Luck everybody!
    :cool: