Join our investing community

Great buying opportunity.

Discussion in 'Managed Funds & Index Funds' started by Smartypants, 27th Jul, 2007.

  1. Smartypants

    Smartypants Well-Known Member

    Joined:
    2nd Jun, 2006
    Posts:
    226
    Location:
    NSW
    Sure I'm stating the obvious here, but today looks like a great buying opportunity for the Navra fund.

    Geez it's good being in a fund that carries a fair bit of cash :)
     
  2. MichaelWhyte

    MichaelWhyte Well-Known Member

    Joined:
    5th Oct, 2005
    Posts:
    798
    Location:
    Sydney, NSW
    Yep,

    I agree. But its a big correction and one based on concerns in the US around credit squeeze as a flow on from the failures in the sub prime mortgage market. Lets just hope that credit squeeze doesn't eventuate and result in profit downgrades in the US across the board. If that happens then the global economy will suffer to the same extent.

    I think the credit squeeze argument is over-cooked, but maybe that's just the bull in me coming to the fore.

    Cheers,
    Michael.
     
  3. Triu

    Triu Well-Known Member

    Joined:
    1st Sep, 2006
    Posts:
    161
    Location:
    WA
    So you think the pending recession is coming in 2010? Peter Spann thinks so maybe this a small warning to be prepared!

    What does everyone do in the recession the people with money i mean!

    I remember the 1990's recession.
     
  4. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,396
    Location:
    NSW
    ""What does everyone do in the recession the people with money i mean!"

    Some are going for a long holiday. ;)
     
  5. crc_error

    crc_error The Rule of 72

    Joined:
    1st May, 2007
    Posts:
    1,367
    Location:
    Melbourne, VIC
    Peter Spann said interest rates are going to run hard by 2010, which will result in a recession.

    What to do with your money? ING accounts pay high yield in high interest rate environments!

    This is where all these highly geared stratergies promoted on this website will crumble..
     
  6. bundy1964

    bundy1964 Well-Known Member

    Joined:
    22nd Dec, 2006
    Posts:
    351
    Location:
    Adelaide, SA
    What are Hybrid Securities? > ING accounts and they can be leveraged to 90%.

    Can also heavily gear short positions, dividend strip and set yourself up for the next boom.

    I lowered my debt by 1.3% today as insurance incase the market continued worse than it is. Mildly hurt to sell today but less pain than a margin call.

    I may regret selling later on but it was insurance for today.
     
  7. MichaelWhyte

    MichaelWhyte Well-Known Member

    Joined:
    5th Oct, 2005
    Posts:
    798
    Location:
    Sydney, NSW
    And, of course, because Peter Spann said it, means its going to happen right?!

    Not sure about yours, but my crystal ball broke when the genie got a bit raucus with the fairies at the bottom of the garden...

    My recommendation, as always, is invest for the long term in quality assets and watch your exposure. If you're highly leveraged then keep a cash buffer up your sleeve to feed the beast through a cyclical downturn. Never invest to the point that you're exposed to a correction and have to sell down your assets to feed it.

    But hey, I know there's traders out there that love to try and pick tops and trade profits through the pullbacks. Tried that, not my game, too hard to move big numbers around when there's lenders involved. Now I'll just ride it out unless it all goes mega-crazey and PERs go out the window like in the dot-com crash. But that's why I say buy "assets". A good test of this is its earnings potential which for stocks means PERs. Don't buy the penny dreadfuls or the spec stuff with crappy PERs.

    Cheers,
    Michael.
     
  8. transit

    transit Well-Known Member

    Joined:
    1st Jan, 2006
    Posts:
    58
    Agreed. I just spoke to Julia at NI and she tells me the current unit price for the Oz retail fund is $1.095 which sounds good especially when you look at the unit price history.

    According to her the highest margin lenders are St George and Suncorp both at an LVR of 75% so i'm now in the process of signing up with St George as Comsec don't accept NI as a security.
     
  9. Nigel Ward

    Nigel Ward Team InvestEd

    Joined:
    10th Jun, 2005
    Posts:
    1,172
    BT now offers 75% on the wholesale fund. Presumably also on the retail fund.

    N
     
  10. MichaelWhyte

    MichaelWhyte Well-Known Member

    Joined:
    5th Oct, 2005
    Posts:
    798
    Location:
    Sydney, NSW
    I'm with ANZ Margin Lending and they offer 75% on Navra too.

    Cheers,
    Michael
     
  11. Ray Brown

    Ray Brown Member

    Joined:
    4th Jul, 2006
    Posts:
    8
    Location:
    FNQ
    Probably the worst timing, but I bailed today. :eek:

    Withdrew $160K. Probably lost a good buying opportunity.

    But then,

    cash is king...

    And I was heavily geared and it was a stop loss.

    So good luck to NavraInvestors, I won't be back in for a little while.
     
  12. coopranos

    coopranos Well-Known Member

    Joined:
    11th Oct, 2006
    Posts:
    498
    Location:
    Perth
    How is that "Good Buying Opportunity" working out for everyone? :eek:
     
  13. tony

    tony Well-Known Member

    Joined:
    20th Jul, 2007
    Posts:
    46
    Location:
    sydney
    geared funds

    Hi

    I'm not even checking my geared funds - perpetual/colonial/amp - but I'm foolishly tempted to up my margin loan account and invest more into the geared funds.

    I am however worried about my Australian Unity $100k - they froze the fund several weeks ago, and they have yet to update the performance returns - the latest figures are at 31 May - jeezus how long does it take to prepare the June month accounts - we are now into August.

    The good news !!. This crash surely will do wonders for a recycle into residential real estate, particularly into NSW (at last).


    Tony
     
  14. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    This isn't a "crash" - it's only really a "correction".
     
  15. Tropo

    Tropo Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    3,396
    Location:
    NSW
    We are still in a pull back mode....just (IMHO). Long way to crash! :p
     
  16. coopranos

    coopranos Well-Known Member

    Joined:
    11th Oct, 2006
    Posts:
    498
    Location:
    Perth
    Im not a tremendous fan of the term "correction" because it assumes there is a correct price for a purely arbitrary market!
    I do agree that there will be some bounce back in the positive direction, but I think such a big hit today after such a bad week last week will make a lot of people very tentative and probably keep things on shaky ground for the forseeable future. Every time there is a hiccup people will think "the sky is falling!".
    I personally think it will be a case of 1 step forward, 9/10ths of a step back for a while
    Will be very interesting to see how Wall St does tonight and how our market reacts to it tomorrow.
     
  17. tony

    tony Well-Known Member

    Joined:
    20th Jul, 2007
    Posts:
    46
    Location:
    sydney
    Its not a "crash", its a "correction", no sorry, its a "pull back".

    Any other silly synonyms - maybe we just call it a "buying opportunity".

    Who cares.

    However you care to define it, a decrease from 6400 to under 6000 is a "fall".

    Tony
     
  18. Giddo

    Giddo Active Member

    Joined:
    9th Jun, 2006
    Posts:
    42
    Location:
    SE Qld
    NAVRA

    I got out of my margin loan with NAVRA retail about 5 weeks ago when it was 1.18 or so.

    Boy am I feeling glad now!!!

    Now I am wondering when I should go back in.
    I sense the market will fall more yet.
    Anyone know how long it takes to process a margin loan request and get into NI???
     
  19. Smartypants

    Smartypants Well-Known Member

    Joined:
    2nd Jun, 2006
    Posts:
    226
    Location:
    NSW
    Quite right, but isn't that traditionally what share markets do?

    My limited knowledge shows that markets move up,down and even sideways.

    Market behaving normally perhaps.
     
  20. Simon Hampel

    Simon Hampel Co-founder Staff Member

    Joined:
    9th Jun, 2005
    Posts:
    4,623
    Location:
    Sydney, Australia
    Exactly my point ... whatever you want to call it - don't call it the "end of the world" - it's just business as usual.