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This is more of a comment than a question.
Firstly we were told that the index would go to 6000 by the end of the year, and then for the last six months the advice from the Switzer experts has been buy banks and other quality shares on the dips.
We have read Charlie Aitken’s predictions, “buy Crown, buy Macquarie, it will be $100 by the end of the year, buy the banks…” Well, this advice has been disastrous. We should have all sold out of just about everything last year and now we are down many thousands of dollars as a result. It seems almost too late to get out now, but is it?
A: Thanks for your feedback.
The index did touch 6,000 briefly in February last year, but unfortunately, it has been largely down-hill since then. I don’t think anyone (us included) saw commodity prices coming under such relentless pressure, particularly oil going under $30 a barrel, and the impact on our market.
In regard to Charlie’s calls, like all of us, he gets many right, and some wrong, I don’t think he has moved away from his call on Macquarie, so my advice is to be patient with this. Crown is a different story – now caught up in whether Mr Packer seeks to privatize the company, or not.
If your are not comfortable with the risk in your portfolio, then don’t hang onto the shares. There is no point in having risk that you don’t want – or more angst than you need. You can protect capital by investing in bonds and other secure interest based investments.
Personally, I don’t feel this is the right time to get out. I am a long term investor with a long term investment horizon. The challenge, of course, is that long term investing often means short term pain – I think this is what we are going through.
Thanks again for your comments.
