Question: Should you put a stop loss or trailer on an ETF?

Answer (By Paul Rickard): There is no right or wrong answer to this.

That said, it would probably be considered to be rather unusual behavior to put a stop loss on an investment in an ETF that tracks a broad-based index which relatively, is not that volatile. For example, an ETF that tracks the S&P/ASX 200 will be a lot less volatile that most individual company shares.

If the ETF tracked a volatile commodity, index or is enhanced, then a stop loss could make some sense.

Question: At what price should I sell WFD (Westfield Trust )?

Answer (By Paul Rickard): I guess the answer depends on whether you want to own shares in Unibail-Rodamco or not.

If you don’t, then you may have missed the best selling time (immediately after the announcement – as I said on Mad About Money).

Going forward, the WFD shares will largely track the price of Unibail Rodamco, less a small amount.

Under the offer, you will get USD2.67 plus 0.01844 Unibail Rodamco shares (for each WFD share).

Unibail is trading at around 210 Euros. At 0.66, and 0.01844 shares, this means that this component is worth around A$5.87.

The US dollar 2.67 is worth, at 0.766, A$3.49

Today, WFD is trading around $9.36 compared to an indicated offer value of $9.60.

Question: I have 1066 Origin shares. With ORG now over $9, should I sell some or just hold for further gains?

Answer (By Paul Rickard): I have been surprised by the performance of Origin. That said, I note the oil price seems really well supported, and given that economic growth is in sync, energy looks like a sector to be moderately overweight.

While Origin is by no means my first pick in this sector, it is not a bad company and I would probably be inclined to hang on for the ride.

As for the major brokers, according to FN Arena, the consensus target price is $8.97. There are 4 buy recommendations, and 3 neutral recommendations.

Question: Do you think Rio and Suncorp are a good buy at their current prices? What would be your target price on Rio and Suncorp?

Answer (By Paul Rickard): I am indifferent on Suncorp. Not my preferred way to take exposure to this sector. As for the major brokers, the current consensus target price is $13.98. According to FN Arena, there are 4 buy recommendations, 2 neutrals and 2 sell recommendations.

With Rio, I think you should be at least market weight the materials sector. I marginally prefer BHP to Rio, but have both stocks in my portfolio. With the major brokers, there are 6 buy recommendations and 2 neutral recommendations. The consensus target price, which is very dependent on long term commodity price forecasts, is $77.31.

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.