RBA, resources push shares

Discussion in 'Sharemarket News & Market Analysis' started by Redwing, 25th Sep, 2007.

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  1. Redwing

    Redwing Well-Known Member

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    RBA, resources push shares | NEWS.com.au Business

    It's like a roller coaster ride; fun in parts and scary in others :eek:

     
    Redwing, 25th Sep, 2007
    #1
  2. Handyandy

    Handyandy Well-Known Member

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    It's interesting!!!:(

    The market may have gone up and exceeded the previous level but my portfolio is still down $80k odd. Seems that all my shares have lost value and failed to be involved in the market rally.

    Just looking at it IAG lost and didn't recover and as they lost nearly $2 that would account for most of my loss :mad:

    Cheers
     
    Handyandy, 25th Sep, 2007
    #2
  3. Redwing

    Redwing Well-Known Member

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    • No triggers or stops set to protect your capital ?
    I'm guilty as well though on this one and have one stock at around -40% , wayyyy down with me thinking its just gotta get back to previous levels :D

    On the other hand there were some nice rises yesterday ASX, CUO,AGO, CBA, OXR
     
    Redwing, 25th Sep, 2007
    #3
  4. Simon Hampel

    Simon Hampel Founder Staff Member

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    The small cap index is still way down from previous highs - hasn't recovered at all well. It got really hammered during the correction - and the bounce has been mostly blue chips driving the action from what I can see.

    Looking at some of the non-geared share funds, many have now hit new highs with the new market highs, but some of the geared funds are still lagging by more than 4% (although will claw a lot of that back after yesterday's close).
     
    Simon Hampel, 25th Sep, 2007
    #4
  5. Rod_WA

    Rod_WA Well-Known Member

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    Ouch andy, I have a bit of IAG ($15k), but I have to disagree with all the bandwagon analysts... two months ago, they had mostly buys at $6.50, now they are all sells at $4.90.
    Why would I sell now??? Yield is $6% fully franked, even though it might go nowhere for a couple of years, it meets all of my buy criteria: high FF yield, ASX200, a bit beaten up. At 6% FF, I am being payed by the ATO to own them.
    So I certainly don't plan to sell them, but it would've been nice to have prior knowledge of that profit announcement. But I was reading that there were three major insurance events in the last year, a 1 in 20 years occurrence. Maybe bad luck, or a sign of things to come (global warming -> more frequent catastrophes?) Or maybe the analysts should have crunched the numbers before the profit warning, not just had nice lunches.
     
    Rod_WA, 25th Sep, 2007
    #5
  6. DaveA__

    DaveA__ Well-Known Member

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    Theres the same % return in both the small cap and asx 200 since august 17..

    the other graph tells a different story (its only a month earlier), just shows how much really got hammered...
     

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    DaveA__, 25th Sep, 2007
    #6
  7. Tropo

    Tropo Well-Known Member

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    Andy,

    Do not forget that stop loss rule is designed to preserve capital and limit risk.
    If you lose 50% of your equity than you will have to make 100% to break even !
    :cool:
     
    Tropo, 25th Sep, 2007
    #7
  8. Rod_WA

    Rod_WA Well-Known Member

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    A much quoted rule of thumb, from Fear and Trading 101:

    Yeah, but ...
    If you lose 5% of your equity than you only have to make 5.3% to break even;
    If you lose 10% of your equity than you only have to make 11.1% to break even; and
    If you lose 20% of your equity than you only have to make 25% to break even.

    Even the basket case of the month, IAG?
    Down 20% since May, not 50%. And at 6% FF yield, it has found a floor; it has bounced 5% since bottoming two weeks ago.
     
    Rod_WA, 25th Sep, 2007
    #8
  9. Tropo

    Tropo Well-Known Member

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    "Even the basket case of the month, IAG?
    Down 20% since May, not 50%. And at 6% FF yield, it has found a floor; it has bounced 5% since bottoming two weeks ago."

    So....what is your point? :eek:
     
    Tropo, 25th Sep, 2007
    #9