Feeling a little uncertain - Aussie Stock Forums

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  1. #1

    Default Feeling a little uncertain

    With the continued downtrend in the stock market over the last while I'm starting to feel a little uncertain.

    My portfolio is fairly diverse with primary investment in mining, infrastructure and energy; secondary in finance and building. I have a bulk of my investment in MAP, ZFX, BHP, PSH and the BB family - BBI, BBP, BBW. Throw in CSR, BLD, IAG and SUN for good measure, and AOE and NMS as well.

    Yes I have spec players too, but I'm not overly worried about them, they're the fruit on top so to speak (and the total of them is less than my investment in BHP and ZFX, for example). And I'm trying to get rid of them anyway, having realised they don't suit my investment style.

    I felt I researched these companies well, and each have their particular benefits. Fundamentally I don't think there is much wrong ... but the market seems to think differently?

    I bought most around the August correction ('cept BHP, have had since earlier this year), and they were all travelling well. However at present most are down near their August levels, except BHP, NMS and AOE which are gonig great. Running at a small loss on a couple (~5 to 8%).

    Am I looking just too short term? I've invested for the long term (5-10 years) on these ones, but I get uncertain when I see prices wobbling around so much. Should I just chill a bit and let things settle? I guess I worry a bit more as it is funded with borrowed money (or money I could be throwing at my home loan). I know I shouldn't be worried (and I shouldn't hover over commsec all day long, watching my proft/loss margin wobble all over the place)... but I just feel uncertain.

    Any advice for a newbie about how to manage SP fluctuations and market forces that just seem so bizzare sometimes?

  2. #2

    Default Re: Feeling a little uncertain

    I'd be giving it a bit longer.

  3. #3
    white swans need love too Timmy's Avatar
    Join Date
    Sep 2007
    Between the lines

    Default Re: Feeling a little uncertain

    Bought for the long term - out to 10 years? I hear a little wine from time-to-time can help?

    On a more practical note, some suggestions (I don't know you or your background so if some of these you have already done/are doing/don't like, my apologies) - maybe check out the price movements in the shares you own over various 10-year time frames. Where was the price in 1990 compared to 1980? 1995 cf 1985? 2000 cf 1990? 2007 cf 1997? Now you have a basis for a (very) rough idea of where they might be in 2017 (that sounds such a long way off...). Read some Warren Buffet - he has some good ideas on dealing with Mr. Market? Write some calls to earn income on the shares you own - view it as effectively lowering the entry price (as long as you dont get exercised). Learn some macro economics - buying long-term investments in recessions can give a great entry price.

    If none of this calms the nerves maybe consider a more active investment style - it might suit you better than a 10-year buy and hold?
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