Managed Funds How are you managing your managed funds?

Discussion in 'Shares & Funds' started by gazza, 16th Jan, 2008.

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How are you managing your managed funds?

Poll closed 30th Jan, 2008.
  1. Sell units in the managed fund

    3 vote(s)
    14.3%
  2. Buy more units in the managed fund to reduce LVR

    7 vote(s)
    33.3%
  3. Reduce margin loan by injecting cash

    6 vote(s)
    28.6%
  4. Reduce margin loan by other means eg LOC

    0 vote(s)
    0.0%
  5. Other - please explain

    5 vote(s)
    23.8%
  1. Handyandy

    Handyandy Well-Known Member

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    What? Is he going to lend you some money?:D

    Hopefully you have sufficient funds to see the deal through.

    Cheers
     
  2. Tropo

    Tropo Well-Known Member

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    DOW may fall down another 880 points (or more :eek:) :p
    Enjoy and keep $$miling :D
     
  3. crc_error

    crc_error The Rule of 72

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    thing is our market really hasn't fallen much compared to the US, so if we come back into line with the US, we still have a long way to go!
     
  4. Handyandy

    Handyandy Well-Known Member

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    Interesting. If this loan had been a LOC that you had paid down then the redraw used against the margin the draw down would still be deductible as its use is for investing.

    But with the offset you are simply withdrawing savings from a bank account reducing the amount left to offset the PPOR loan.

    The only time that the offset works for you is when you intend to purchase a new PPOR recycling the old PPOR to an IP.

    Obviously there are two different and conflicting aims.

    Cheers
     
  5. Alan__

    Alan__ Well-Known Member

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    Hmmm.......anyone else reporting in the US tonight? :eek:

    Nice fightback by the ASX today though. -180 to -40 might still be down but it's a great trading range.....
     
  6. MichaelW

    MichaelW Well-Known Member

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    I think Dubya might be going to announce his stimulus package tonight their time...

    Cheers,
    Michael.
     
  7. Tropo

    Tropo Well-Known Member

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    Another point of view

    The Writing is on the Wall
    Peter Schiff, President and Chief Global Strategist

    Despite the fact that all economic road signs continue to point the way towards recession, and likely much worse, most investment professionals continue to blindly cling to their ingrained belief that nothing could possibly derail the U.S. economy or significantly reduce the value of U.S. assets. Unfortunately, it appears that no amount of empirical evidence can intrude on this paradise of self-delusion.

    Despite the recent surges in the price of gold, oil and other commodities, they are convinced that there is no inflation. As home equity evaporates, consumer debt hits record levels, and retailers report disappointing sales, they remain confident that the consumer is in great shape. As manufacturing continues to contract, they still expect an export boom to keep recessionary forces at bay. As unemployment grows and job growth stalls, they maintain that rising incomes will offset the combined forces of evaporating home equity, rising food and energy costs, resetting ARM payments and stock market losses. As the credit crunch spreads well beyond subprime, most claim that it will not derail what they believe to be an otherwise sound economy. Few see any threat what-so-ever from the falling dollar or the increasing transference of American assets to foreign government investment funds.

    Despite the fact that these trends have played out along the lines that I have repeatedly predicted, most of my fellow media commentators who ridiculed my predictions in years past continue to do so. However, for those who can muster even a hint of objectivity, the question as to whether I have been right or wrong has clearly been answered.

    Sure, the entire scenario has yet to play out, but I feel that enough has already happened to validate my entire thesis. I write this not to pat myself on the back, but primarily to persuade those of you who have yet to follow my investment advice to stop procrastinating and take decisive action before it is too late. For those of you who have begun the process of divesting your portfolios of dollar denominated assets, the time has certainly come to complete the procedure.

    The situation today is as dire as I have ever seen it. It is clear that more Fed rate cuts are coming soon, so the downward pressure on the dollar will only intensify. In addition, the Bush administration is now considering a "stimulus" package which will include immediate tax cuts/rebates and the Democrats in Congress will likely throw in some new spending for good measure. All this, of course, will mean even more inflation, as the Fed creates additional money to fund larger federal deficits.

    At some point this will cause the bubble in the Treasury bond market to burst, causing long term rates to shoot up despite the Fed's efforts to suppress them. At that point the Fed will either be forced to raise short-term rates sharply, regardless of its effects on the economy, or take us down the horrific path toward hyperinflation.

    Regardless of which option the Fed chooses, the impact on the purchasing power of the dollar, and on those of us still relying on it, will be substantial. Do not worry about the short-term volatility of foreign stock markets or of particular foreign stocks. Keep thinking of the big picture and the importance of making the shift out of U.S. assets. Regardless of how it plays out, in the end Americans will see substantial reductions in their standards of living and U.S. dollar-based assets will lose considerable value relative to assets denominated in foreign currencies. Those unfortunate enough to be left holding only dollars will clearly suffer, while those astute enough to diversify abroad will fare much better.



    Peter Schiff is the President, Founder and Chief Global Strategist for Euro Pacific Capital. He is widely acknowledged as a expert in international markets, and in global economic strategy. He is a speaker at all the major investment conferences. He is regularly featured on CNBC and Bloomerg TV , and often quoted in the Wall Street Journal, Barron's, New York Times, the Financial Times, Investors Business Daily, and many others.



    8 Featured Investment Recommendations
    Investing in Global Agriculture, Two Recommendations in Asia

    While gold and crude oil have been making mutli-year highs, and making us money in the process, a third leg of the commodity market, agriculture has been making impressive gains too.

    Wheat prices had reached a high of $6 per contract in 1996 and then clasped to below $2 by 1999. Today wheat is higher ( about $10) than its 1996 prices, or up over 500% since 1999. Soybeans had been in the $10 range in 1996, fell below $5 by 1999, and today trade in the low teens. Other agriculture prices have seen similar results. Remember, gold was around $300 in 1999 and is near $850 today, or an increase of about 180%.

    We think commodities will be rising do to the continuing decline of the US dollar, as well as the quality of life upgrade cycle in China and India, and global demand generally. In the last five years China went from exporting oil to becoming the second largest importer in the world. 10 years ago they all biked to work; now, many drive. In the process they have increased their demand for energy and metals exponentially.

    In 1900, we Americans were using one barrel of oil per person annually. By 1970, we were using 27 barrels per capita. At the end of World War II, Japan was using 1 barrel per person. By 1970, they were using 17. Today, China uses 1.3 barrels per person annually and India uses .7. The increased demand this similarity infers is staggering.

    As this quality-of-life process continues, the Chinese and the Indians will consume more food stuff as well. This means they will eat more chicken, eggs, beef, pork, rice, and wheat. Interestingly, as the price of oil has risen, the demand for alternative energy sources, such as corn ethanol, has increased. Rising corn prices have in turn pushed up feed prices for animals using corn, contributing to, for example, a rise in the price of chicken. As demand increases, those companies producing and selling agriculture natural resources to China and India will have increasing revenues. We want to own these companies.

    We have selected two agriculture companies selling into the Asian markets. Besides the two companies profiled below, we have researched additional agricultural companies in other countries that also may interest you.

    Company Number 1

    The first idea comes from Australia. This company is an agricultural conglomerate in the agribusiness sector, identifying agricultural commodities which are in demand globally, particularly from Asian markets. The Company owns producing agriculture land to generate the commodity products to sell. Think of this company like a real estate investment trust that buys farms instead of office buildings.

    Forestry has been the company's core focus. Their hardwood plantations produce woodchips destined for the pulp and paper mills of Japan. Over the past three years, the company has progressively expanded its product range. Wine grapes, organic olives, almond groves, and beef cattle have all been identified as commodities the company feels will in be demand over the long term, and has bought groves, vineyards, and ranch lands to grow these commodities.

    The company has more than US$1.7 billion under management, and is part of the S&P/ASX 200 index, the index holding the largest 200 companies in Australia.

    US$514 million in market cap, Price to earning ratio near 8. 52 week high/low was A$3.04 in June, 2007, and A$1.74 in December, 2007. Stock trades near its lows. Given its recent drop in price, as well as its approximate 6.5% yield, in strong Australian dollars, we think this company makes an excellent core holding now.
     
  8. Handyandy

    Handyandy Well-Known Member

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    Hey Troppo

    Where is the rest of the story ala Company 2. I always like the puzzle:eek: I think in the case Company 1 is Great southern. Anybody else want to guess?

    Cheers
     
  9. perky

    perky Well-Known Member

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    Sydney

    Andreas,
    GTP reached 1.74 on Jan 8th, previous to that on Dec 20.
    Nice little double bottom there.....
    I think we have a winner :)

    Chart looks very reasonable too (much better than the majority of stocks at the moment). Look to buy if it breaks out of that downward channel - say above 1.90 and definitely above $2.00 and s/l just below 1.74 - current price is 1.81
    David
     
  10. Rod_WA

    Rod_WA Well-Known Member

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    Inglewood, WA
    I'm a fan of GTP, have about $20k, yield is self-funding.
    Wouldn't say I'm rushing to buy back though, did sell half my holding at $2.29 a few months back as a hedge, and I'll wait for the dust to settle before cranking up again. Guv'ment MIS policy-on-the-run doesn't help the confidence.

    But I do love trees.
     
  11. Rod_WA

    Rod_WA Well-Known Member

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    Where's this article from Tropo? (and have you gone long GTP?)
     
  12. Tropo

    Tropo Well-Known Member

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    NSW
    Scroll up and you will see it. Posted on the 18th Jan 08.
    I enclose the weekly GTP chart.
    I do not know why anybody would go long at the moment. :confused:

    :cool:
     

    Attached Files:

  13. The Stig

    The Stig Well-Known Member

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    Central Coast NSW
    Have you look at protecting your portfolio with Put options?

    If you have a well diversified portfolio, look at buying XJO puts. Just an idea.

    Everyone protects their investment properties with insurance, why not protect your leveraged investment in the share market too?

    A lot of products are getting puts built into them, so it is becoming more popular to use them.