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What sounds like the better investing strategy

Discussion in 'Investing Strategies' started by jack0194, 3rd May, 2020.

  1. jack0194

    jack0194 Member

    Joined:
    3rd May, 2020
    Posts:
    7
    Location:
    Brisbane
    Say I want to invest $3000, do I

    A: invest it in Blue chip shares?

    B: Invest it in ETF stocks? or

    C: forget both those ideas and put it in super?
     
    twisted strategies likes this.
  2. twisted strategies

    twisted strategies Well-Known Member

    Joined:
    3rd Nov, 2013
    Posts:
    1,358
    Location:
    QLD
    welcome to InvestChat ,

    first you should consider your own aims ( and you , yourself )

    given that 3 of the big 4 banks have just released ugly results , , that has put a cloud of an important piece of the 'blue chips , which WILL flow on to passive ETFs

    since you feel confident that you can do as good as your super ( and some of those funds will be a mess currently , so the performance bar might not be high )

    so if you go for an ETF , would you go for a 'smart beta ' style ( either equal weight or high div. yield ) hoping the fund manager makes good choices on your behalf NORMALLY those 3 banks are a big part of these ETFs as well but the fund manager has the option of swapping out of them and buying something traveling better , if he can find them )

    'blue chips ' apart from those 3 banks , might work if you select wisely

    now if you want to be brave , you could pick one or two of those 3 stressed banks hoping all will come good in the next 3 years , somewhere around $15 for any of those banks is a little expensive currently , so sub $15 close to $12 if the market slides further , is not that bad for a novice to build on

    REMEMBER ALL INVESTING INVOLVES RISK , by risk i mean losing some or ALL of your money ... so be mentally prepared to lose it , but i hope you don't

    by the way it might be very hard to define a 'blue chip' in the current climate , something like SYD or TCL would NORMALLY be boring but solid in a downturn , but not this time , they have extra stress of their own

    please take plenty of time to research your targets ESPECIALLY the ETFs , it is a lot of effort but they are NOT all the same those little details can make a BIG difference to your results

    cheers and good luck
     
  3. Waimate01

    Waimate01 Well-Known Member

    Joined:
    26th May, 2008
    Posts:
    167
    Location:
    Sydney
    Important to recognise that "super" is not an investment strategy -- it is a tax concession. Once the money is "in super" whoever is managing it is left with pretty much all the same investment options that existed "outside super".
     
    twisted strategies likes this.
  4. GThomo

    GThomo Member

    Joined:
    1st Jun, 2018
    Posts:
    13
    Location:
    Brisbane
    Jacko, chances are the money in super is going to end up in either blue chip shares and/or ETF's anyway. You just have less control. As twisted said, the banks have released so ugly results but is that going to continue? How long are you looking to have the money tied up?

    Personally I have money in ETF's but I am not throwing more at it. I do have investment mortgages though and I am throwing all spare cash at those while interest rates are low. Not sure if that is an option for you?