Living on Equity - Part 4

Discussion in 'Share Investing Strategies, Theories & Education' started by Simon Hampel, 19th Mar, 2006.

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  1. Glebe

    Glebe Well-Known Member

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    Thanks Michael. Will drop it down from 12% to 10%, makes sense.

    Cheers, and thanks again for building the spreadsheet.
     
  2. kennethkohsg

    kennethkohsg Well-Known Member

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    Dear Sim,

    1. I wonder how resilient the plan is if we were to encounter another world-wide stock market crash similar to the one in 1987, or the Asian Financial Crisis on 1997?

    2. Dr Shane Oliver/AMP believes that the Australian property market is presently over-valued by some 20% and among the most expensive in the world. It is further said that the Australian property market is heading for a decade of stagnancy over the next 10 years.

    3. While I myself may not fully agree with Dr Shane Oliver's assessment regarding the future direction of the Australian property market, I wonder if your LOE plan will still work well under the unfavourable scenario as painted by Dr Shane Oliver/AMP?

    4. I will like to hear and learn from your as well as the other members' views on this matter, please.

    5. Thank you.

    regards,
    Kenneth KOH
     
  3. Glebe

    Glebe Well-Known Member

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    Kenneth,

    If property doesn't go up for 10 years, and if we have some sort of stockmarket crash that lasts years, then we're all screwed!

    I'll keep ploughing away though into investments that look likely to increase in value over the short to medium term. What choice do I have? Not invest at all?

    What are your thoughts Kenneth? Do you believe in LOE?
     
  4. Tom&Don

    Tom&Don Active Member

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    Yeah, he could well be right .... but there are areas that you can invest in that are in demand and will outperform. Therein lies part of your job as an investor.

    So despite prevailing conditions, and gloom and doom predictions you can skew odds in your favor.

    Then you can turbocharge your portfolio with value add - something you are well aware of Ken :)

    So with a combination of not-so-common sense (if it were common then everyone would do it!!!!) and a bit of value add you can beat these predictions.

    T.
     
  5. elanus

    elanus New Member

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    Dead thread now?

    This has been a really interesting set of articles. Most of the posts in this forum were made around March last year, with the latest couple being from September. Does that mean that the LOE set is now dead and Part 5 won't be published?
     
  6. Simon Hampel

    Simon Hampel Founder Staff Member

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    We are still hoping to get a Part 5 - but don't hold your breath waiting :(
     
  7. Glebe

    Glebe Well-Known Member

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    But Sim, did they at least live happily ever after?

    It's a cliff hanger!! :eek:
     
  8. Simon Hampel

    Simon Hampel Founder Staff Member

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    The butler did it!

    (oops - spoiler alert !!)