Shares or Property- Economic Clock

I found a link to a property clock
Sydney should be at 8pm now
http://www.iqpropertyplanners.com.au/images/property_clock.gif

 

exiting the market now and moving into cash is a dangerous thing to do. Once markets recover, they usually rebound quickly, and if you miss this rally, you will significantly reduce your long term growth average. Markets also usually recover before recessions end..

If anything now is the time to be entering more money into the market.. put it in on a regular basis and dollar cost average your entry..

they say buy in gloom sell in boom!

On friday I picked up some stocks.. I bought NAB and FMG.. nice discounts..

 

NAB???
Ouch, did you do it on purpose?
I'd stay well away from it
The banks are smelling bad at the moment
Cheers

 

Chris, I totally agree with your comments. I was buying stock on Friday.. 1 week ago I bought OIF for 30c with a 17% yeild, thats after they reduced their dividend to stop capalizing of interest. Why would someone buy direct property with OIF is a direct property listed fund with such high yeild.

I also bought NAB, the way I see it, they will have a 1 off write off, and then the following year it will be business as usual. Its paying a dividend of 10% now (counting franking) How can you go wrong with such bargins? Good thing is the share market has had its correction, so entering now the down side is greatly reduced. Property has not had a correction, and yeild remains very low.

Dont get me wrong, I also am confident in property, and have seen growth on my new IP each month since the beginning of the year. With my interest rate fixed for 10 years, I'm laughing. But I doubt you will see 30% gains from property in the next 12 months, I it is very possible our market will recover 20-30% quickly. Heck, from 5000, all ords running to 6000 is a 20% gain, and I don't see that out of the question, plus with 10% yeild, thats a 30% return..

I also like your view to regularly enter money into the market over the next 6 months, that will protect you against any upcoming sharp falls.

 

only $5000 worth, so nothing big..this stock has a better chance for growth once the crap clears, than a already well priced bank..

fundamentally NAB is still the same bank, just they will have a large write down this year.. I also own WBC as well, got $10k worth of that one.

 

CRC
I agree, that's the way to go if you plan to buy shares right now
Cheers

 

Statistically – market is going down 4~5 times quicker (average) than up, unfortunately.