Question: I hope France is nice and by the way, Marty is doing a really good job with the TV show. Gary Stone said the other night that he is 100% cash now (about 100pts ago). I am basically only in the top 20 stocks and have done well over the last two years (no mining stocks). I am retired with an SMSF and like dividends, but not capital losses. How far down does Gary (or yourself) think we might go and when would you buy back in?
Answer (By Peter Switzer): Thanks for your comments about the TV Show and the great job Marty is doing.
If you read my comments in Monday’s Switzer Super Report [1], I am still pretty positive about the market and feel that there may be a little bit of a dip before the market moves higher. I am not betting on it – like you, I am close to fully invested – however I am just not adding more monies into the market at the moment.
If there is a dip, my sense is that it is going to be fairly shallow – if you looked at Lance Lai’s chart that we published on Saturday [2], I would suggest about 5250.
Question 2: Can you please tell me if there is a bill going through parliament regards dividend washing? If so will it be backdated?
Answer (By Paul Rickard): Yes – the ‘Tax and Superannuation Laws Amendment (2014 Measures No. 2) Bill 2014’. It has passed both Houses of Parliament (19 June), however it has yet to receive Royal Assent.
The effective date for the changes to “distribution washing” is 1 July, 2013 – yes, it is being backdated.
From my perusal of the legislation, it appears it is not being applied earlier than this date. You can review the legislation here [3].
Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
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Also in the Switzer Super Report:
- Tony Featherstone: Five yield payers under $5 [5]
- Charlie Aitken: Wait for the buying opportunities part 2 [6]
- Rudi Filapek-Vandyck: My SMSF – a tilt to dividend-paying industrials [7]
- Roger Montgomery: Flight Centre – things to excite investors [8]
- Staff Reporter: Buy, Sell, Hold – what the brokers say [9]
- Tony Negline: Hands of it – it’s for your retirement! [10]