Feeling 'exuberant'.......or not?

Good article in the SMH Herald today, that reminds us........wait for it........SHOCK....

Shares do go down too!!

Shares go down, too, remember - Business - Business - smh.com.au

The article also touches on 'exuberance' and how this might affect our returns in the next 12-months. (Personally I find the whole exuberance part of investing really interesting).

Commsec's analysis suggests (no promises) that the 12-month outlook for the market is about +16.5% from a fair value starting point.

With their 'Exuberance Meter' currently reading -5.3%, they suggest, it is possible (no promises) that we could see another almost 22% year.

What am I sure of? Even if the market is currently showing better value, there will be less people buying for a while.

The Market a cold and calculating machine? Nah.......human sentiment and emotion is alive and well in many, many Buy/Sell decisions.

PS. DOW closed Down 281 points. Another interesting week coming up.

 

Market is just wierd

The market is just wierd at present. One day one of my share companies has a bit of growth, so I think that's good progress. Next day it's back where it was. No rhyme or reason to it all.

 

I think this volatility is good for the Navra Australian funds though as it provides more buying and selling triggers to the system. It will be interesting to see if the fund is generating more income than it did during a constant bull period.

 

Its the sharemarket after all. If you tried to get a sell price on one of your properties every day for 30 days, you'd get a different offer price dependent on the fickle mood of the buyers on each day, let alone the myriad influences on a share price.

Probably best not to assume common sense prevails in the sharemarket ... everyone knows its specialist, annoying and volatile. Lets face it, there's people here who have forgotten more about the market than newbies like us will ever learn ...

Personally, managed funds make a massive amount of sense compared to micro-management based on just enough information "to be dangerous".

She's a slippery slope for the newly introduced I reckon - we only read about the successes. which don't generate as much attention as the thousands of train wrecks every day