Australian sub prime mortgage market.

Welcome to the peepeenattis, Come this weekend at PP's dan, wear a black robe and a mask, bring some candles, we'll supply the goat to sacrifice

 

Don't sell. Buy quality when the herd is fearful, sell when the heard is greedy. Only buy shares you would be happy to hold longer term. Never bet the farm on anything, spread across different sectors.

I started with $10k of BHP in 1999, kept adding or buying different shares in $10k lots. Eventually could buy in bigger parcels. All in protected super fund, normal businesses and property outside super. You just keep plugging away, time does the rest!
It's not brain surgery.

 

Any news yet ?

 

i think kerrari's info about macquarie got out!

market's up today....macquarie's down.

geez i hate the sharemarket sometimes

 

Exactly correct. Problem lately is that many failed to see the down side, or how far down it could be. IMHO, stock market is like gambling - you have to be able to wear the loss.

 

Absolutely - but also businesses like BHP actually produce a necessary real product so will always have a life. On the other hand, many of the recent market favourites (and macq is just the biggest, most obvious) are really just very sophisticated smoke and mirrors moving money around without producing any real product.

 

With regard to MQG, IMHO the price is being depressed because people don't really understand how they make their profits, and with the credit crunch of last 6 months, people have been abandoning the stock because they are worried that the stocks run can't continue. MQG have been savaged compared to the other banks - just look at the drop since November. When looking at charts in hindsight, its always easy to pick a trend!

That said, there have been massive opportunities to short the market, especially in stocks like MQG, CBA etc, so for many it is not doom and gloom in the past few months, they have been making massive profits.

The reality is that for many, their shares are in held in super funds ( either directly or indirectly) and these are prohibited from trading short, meaning that they take the full weight of capital losses of recent months. Even worse , several people I know who are close to retirement borrowed substantially last year to top up their super (to take advantage of the once off 1m cap on contributions ) and invested in products such as the Perpetual Geared Australian share fund ( which showed massive returns over the past 4 years ), but are now significantly behind in their contribution ( ie lost 50% in 8 months ) and will have to postphone their retirement for some years (or hope the market comes back).

If you are considering investing in shares, it's best to become informed first and understand a little about the business cycle, the health of the economy and the impact of interest rates, then develop a strategy that suits your aims and stick to it.
If you are unsure, it's better to sit on the sidelines and miss out on a small gain, but you will avoid the potential of a huge loss. The market at the moment is unsettled, you can make 7.25% on cash with no risk, which is a lot better than say MQG over the past 6 months.
A saying I heard recently: The market takes the stairs up and the elevator down. There have been plenty of examples of this recently

M

 

best advice of the year!

 

Well, I thought your advice about FF was pretty decent.

 

good point....

BEST FINANCIAL ADVICE OF THE YEAR.

best car advice is at www.pless.com.au/mechanics.htm

thanks for reminding me.

(sorry brett)

 

look mini-PP, he doesn't need any help !!

 

sure i do...i might have forgotten if he didn't remind me.

i should repost the link to the scud has class thread too.

that was pretty eye opening.

 

Haha, please do!

Never read that thread. lol

 

Saw my Granturismo in the metal today. When it got here it didn't have ball polished wheels as ordered. It appears they went the way of Bianco Fuji paint; but they forgot to tell anyone. There is a known flaw with waves in the plastic sills between the wheels. There were 5 cars awaiting delivery and another 4-5 in the showroom. My car has more waves than the pacific ocean, the rest were fine *sigh*
A warranty claim before delivery, let's hope it's all great from here.

 

so you are ending up getting a Fuji Bianco car???

 

You must really want this car, I would have given up long ago, simply too many stuff up's along the way:
It's late, the ordered colour NLA, the ordered wheels NLA, waves in the sills, and transport damage needing a re-paint.
I hope it' OK once you eventually get it, you deserve that for putting up with all this.

M

 

Silver, there were 3 of 'em awaiting delivery.

 

beautiful cars. Any chance it'd be ready for you to bring it to the dinner next Friday night?

 

It can only get better from here...................... or it will have a very short tenure!

 

Delivery 4pm tomorrow.

 

Well I hope it is a case of good things come to those that wait, in which case I expect to see a pic with a huge beamy smile. If that is not appropriate, then one of a totem pole up the salesman's poop shoot will have to suffice

 

Exciting!!

 

Another interesting day on the markets, with MQG trading at around $45, about $6 down since the beginning of the week, and $15 down (25%) in the last 8 trading days. Big drops like this show there is currently very little confidence in the markets, and days like today will enforce that sentiment.

But I wonder how low MQG can go ? Once could say jokinlgly only to zero, and that it's already close to halfway there from the peak of $83.59 in early November.

If the falls in share prices are not reversed soon, there will no doubt be follow on effects on consumer behaviour & the economy.

M

 

All weekend to play with it, see how it goes. Had a look at the repaired roof, couldn't spot repairs.
Pretty annoyed about the wheels I have to say. Will investigate doing it aftermarket.