General Markets Talk

Aussie Assault

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Apr 26, 2007
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I'm watching a couple more closely than anything else in ADO and NEU. Both seem very promising but cannot get signatures on the dotted line with contracts at the moment. I've got a tiny little parcel in ADO and would like to add more but just cant work up the courage to spend anything more significant.
 

sabre_ac

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Do you buy your index funds through your super? Is your strategy that longer term?

Some of the US ETF have been shooting the lights out.
I'm living in North American at the moment and buy the index funds through a trading account with my bank, surely there would options for Australian investors to buy US index funds in Australia.

Currently my strategy is focusing on building up the retirement account, which has a horizon of 20+ years. Normally I wouldn't be investing any money I need within the next three years to 5 years in stocks (probably closer to 5 at the moment).

That said, I hate money sitting in bank account earning interest that barely keeps up with inflation. The strategy here is to keep it in a bank account I can't see day to day to avoid the temptation of plowing it into more index funds (These are funds that are intended to be spent in the next couple of years).

How about you?
 

benchwarmer5

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Jun 14, 2010
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I'm living in North American at the moment and buy the index funds through a trading account with my bank, surely there would options for Australian investors to buy US index funds in Australia.

Currently my strategy is focusing on building up the retirement account, which has a horizon of 20+ years. Normally I wouldn't be investing any money I need within the next three years to 5 years in stocks (probably closer to 5 at the moment).

That said, I hate money sitting in bank account earning interest that barely keeps up with inflation. The strategy here is to keep it in a bank account I can't see day to day to avoid the temptation of plowing it into more index funds (These are funds that are intended to be spent in the next couple of years).

How about you?
I am also frustrated at holding a large cash position and the 4% return against Real inflation numbers = Capital chewing

Have been thinking about the high yielding ETF's like VHY, RVU which have ex-div coming up but they follow the market and I am a big fat bear about that at the moment.....hence the high cash holding
 

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JohnW

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Oct 6, 2005
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We use lots of ETF's for clients. Particularly when they a price sensitive. I don't hold any my self.

I do hold the vanguard conservative index fund as part of my defensive allocation.

Have a look at VTS.
 

Aussie Assault

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Apr 26, 2007
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Good few days on the market put together now. Nice little bounce.

Kathmandu on the other hand copped a flogging. Down 22% just today alone. Motley Fool love to ramp this stock I've noticed so a few will have been caught out I'd imagine. A few stop losses triggered today no doubt.
 

knife

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Aug 19, 2009
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We might see a period of correction after Switzerland removed the Franc/Euro peg. Swiss Franc was up ~30% against the Euro and risk is now off everywhere and flooding into gold and currencies considered safe havens (like the Franc and Yen). This essentially is taking Switzerland out of their defacto membership of the EU.

Another big problem for the EU is many citizens in Eastern Europe like Poland and Hungary have loans denominated in Swiss Francs that have suddenly become ~30% more expensive to service. A lot of exposure in Switzerland and in European banks.
 

benchwarmer5

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Thought I would add some notes...

Trades I currently thinking about
REC chart looks great and potential for a bid in the back ground
AJX strong momentum
QAN probably missed this one now ffs
Four days later they received a bid so lets see if I can make it (fluke it) two from two....
Making a call on a takeover approach for NHF. Here is the chart with a line pointing to the tight trading range with slight up trend (that's where I got in) before a break out. This was a longer term investment for me and I don't pay too much attention to technical junk like charts except for possible entry points and break of support lines but the daily SP behaviour has caught my eye and it could be absolutely nothing of course (index inclusion) but I would not be surprised to see a bid soon.
 
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Jimmy_the_Gent

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There's talk about a rate rise later this year or early 2018 based on recent trade surpluses.

That'll be a good thing for the frothy house prices on the East coast.
 

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The Emu

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Majority of Australia has their 'wealth' in housing so RBA will be hesitant to shock the market with rate rises. The issue is the economy is doing average so their is not much pressure on them to raise rates - floating exchange rate is creating a buffer as well. The only way our housing bubble will pop is from an external shock like China/USA/Europe - there are too many drinking the same cool aid for it to go tits up on our own behalf. You really think our shit politicians would do anything to harm their own nest eggs by changing the rules regarding negative gearing, non-resident ownership, supply addition? Goodluck - they aren't stupid. They do not give a fu** about a select group of young people who complain they can't afford a house.

Majority of home owners walk around like they are are geniuses for buying a house and making all sorts of % gains. What many fail to realise is that when the day comes for them to realise their gains by selling they will be buying into the same expensive market unless they plan on living on the street/moving country. History has told us that house prices are no different to every other asset class like shares/bonds etc that go through cycles and experience 'corrections'.
 
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AvantGardener

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Mar 13, 2016
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At the moment the $AUD is buying $0.79USD. In theory somebody could buy $790 USD for $1000AUD.
Then when (if as predicted by end of 2018) the AUD drops to $0.60 you would be able to convert for $ 790 USD to $1317 AUD. Factor in associated expenses.

Not that I'm going to because I am after safer returns for my limited savings, but how would one go about trying to take advantage of the predicted fall in the $AUD?

I am thinking that as a starting point buying some established well proven managed funds in the US could lower the risk?
 

Jimmy_the_Gent

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At the moment the $AUD is buying $0.79USD. In theory somebody could buy $790 USD for $1000AUD.
Then when (if as predicted by end of 2018) the AUD drops to $0.60 you would be able to convert for $ 790 USD to $1317 AUD. Factor in associated expenses.

Not that I'm going to because I am after safer returns for my limited savings, but how would one go about trying to take advantage of the predicted fall in the $AUD?

I am thinking that as a starting point buying some established well proven managed funds in the US could lower the risk?
Betashare has a USD fund. If the USD strengthens against the AUD, it goes up:

http://www.asx.com.au/asx/share-price-research/company/USD

I imagine there are better ways to go though.
 

Jimmy_the_Gent

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You guys are sort of right but it's not that cut and dry.

What if he has 100k in index funds and wants to learn about currency movements so uses 1k to mess around a bit?
 

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