What are you buying?
Two weeks ago in Three Months of Gains go Poof, I hoped buyers were rushing in too early and that I’d get to buy lower. Today is the first day I’ve seen some attractive pricing, but where am I most likely to get the best bang for my buck?
As always my game plan is to average in. But what are the most attractive opportunities in Australian and US markets?
Surely AWB and NUF aren’t the most compelling investments in Australia (sorry guys). The current sell off is fear based with an accompanying flight to safety. When normal programming returns the stocks likely to bounce the most aren’t possible value plays like NUF and AWB. Growth assets are getting slammed right now and if you believe the current fear is overblown and not indicative of economic prospects over the mid term then growth and speculative assets may be the place to look.
Someone sold shares of MTU.AX at $1.36 today. I’d take that trade.
Or perhaps averaging into index ETFs is a more sensible approach for a time limited guy like me. Ideas anyone?
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I have the beginning of feelings not dissimilar to Buffett feeling like on oversexed teenager in a harem. I agree the main issue is to get maximum bang for your buck. Do we get greedy or extremely greedy? There are now fair prices on offer for good companies. Do we wait for goods prices for good companies? That is the market timing devil in me speaking.
For what its worth, and readers do your own research, this is just my opinion…legalese disclaimer blah blah…I am now watching COH (not fair price yet), CSL (fair price), BTA (good price), TLS (getting close to fair price), CPU (not fair price yet), RMD (analysis incomplete) and SRX (analysis incomplete).
As usual, rock solid small caps such as ASW and IMF will not budge, so no bargains there yet.
Hi Dean,
Something I learnt recently is that outperforming the index at a loss still sucks. So when I sold STW at 4800 and left my individual stock holdings, that was a mistake. TLS went down less than the index but I still made a loss on it and that sucks.
For me I’m an index investor and am value cost averaging into the index. I bought 1 STW at 42 (but then I sold it as it bounced to 44.5 the next day), today I bought 2 STW at 40 and I’ll buy 3 STW at 38. That’s actually where I get outperformace. And really it’s all I have time for. Everyone has different investing skills or temperament and for someone else this strategy could result in a major loss for them or underperformance.
There’s sufficient volatility at the moment that you could make a decent return by swing trading the index on a weekly basis. So why invest in individual stocks which could potentially go to zero when there is enough volatility in the index ?
This is a fantastic environment for trading due to the volatility. I’m trying to stop myself from trading but sometimes it’s just too tempting. I’m trying to keep my eye on the prize which is what I think the range for the index will be for the next 12 months.
Also Dean I beg to differ about the potential for NUF to bounce.
Sumito purchase 20% company ? March 2010 $14/share
Institutional placement ?7.40 ?April 2010
1:5 Rights issue ?5.75
Some director buying recently at 7ish
Last price: 5.87, low today 5.73.
I think it has a better chance of bouncing than ELD or PSH at these prices. But of course I could be dead wrong so no one should base their investing decisions on anything I say.
There is a contemplation to simply buy back stuff I sold a month or two back. But … not in a hurry.
Zz
Nice to hear form you Zz and good to hear to took some money off the table near the recent top. Any biotechs look appealing to you at the moment? I note Vertex has dropped down into my buy zone, boring I know, but I think it is a good return for the risk.
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