ASX Through The Floor

Thanks, will get my online access this week hopefully (mailed in application forms and cheques last week).

And totally agree, especially at the current time... will ostrich it out

 

Why is this big fuss about China’s GDP?

China’s GDP is forecasted to grow by 6.8% this year. 6.3% next year. This is still damn good growth.

After all China’s GDP is about 13.5% of the global economy. EU is about 24%. US is about 22.5%. So even if China slows down, the rest of the economy should be enough for companies to grow.

To me, the current tumble seems a little over-reaction. May be it is a correction. I would say, time to diverse

 

https://www.google.com/finance?q=INDEXCBOE:VIX&ei=yQHcVZmbHszK0gTfyomQAQ

VIX is off the chart.....! 40 points - that's unheard of.

 

See, what is the difference between a managed fund and an EFT, and I've also heard of a LIC? What's that?

 

Fwiw I have no idea but I did use commsec a few years back to sell some employee shares that I was salary sacrificing. Very easy to use.
One thing with shares is that I've been told don't use a broker, your paying then click the mouse! If I had cash to splash id be looking at charts and some rough googling for blue chip stocks, and pick a few and set and forget for a few years.

The next few weeks could be the time to buy but having no idea wouldn't be a wisemove to dive in. Put aside some "play money"

 

I learned enough about shares and options trading (through reading books, running simulations etc) to know that I don't know enough about shares and options trading

Hence managed funds for me!

 

Very broadly and quickly ;

- Managed Fund. Unlisted unit trust. Capital gains paid out each year. Active management. (except Vanguard has some unlisted index funds). Higher fee basis.

- ETF (Exchanged Traded Fund). Most are passive, index weighted. Low fees. Capital gains not paid out (better to manage your tax position) except for rebalancing turnover.
https://propertychat.com.au/community/threads/exchange-traded-funds-etfs.288/

- LIC (Listed Investment Company) A LIC is a pooled investment vehicle, in the form of a company, the stock of which can be bought and sold on the ASX. The Company holds a basket of stocks, and will also have a varying amount of cash on hand. This is the company’s tangible assets. Its investment managers make assessments about which stock to add to the basket, and which to sell, when, how much cash to hold for future buying opportunities etc. In exchange for this service, the Company charges a management fee. Management fees of the largest, longest established LICs are extremely low, typically 0.20% per annum or lower.
https://propertychat.com.au/community/threads/listed-investment-companies-lics.267/

 

Yeah not since 2010 and 2011. Crazy sell off in early trade last night, Berkshire Hathaway down almost 9% briefly.

 

Will be interesting to see what the morrow brings

 

China has just cut announced rate cut (25bps) about 30 mins ago. Buying opportunity window now closed.

BHP is up 8% on the London exchange.

 

Damn....

 

ASX up over 10% now at 5250 from 4750 low, nice recovery. I wouldn't call it a dead cat bounce, more the spike down was an aberration driven by panic and forced selling/stop losses.

 

Looks like sentiment turned bearish late in the US session, so ASX futures have gone from being up at 5240 are now down at 5077. So the fun continues

 

ASX @ 5060

 

Don't for a minute think that I don't appreciate all this information, because I do. BUT....I think I'm even more confused now that I was before. I'm feeling somewhat out of my depth here.

So if I'm wanting to SLOWLY transfer over from property to shares - and by that I don't mean all of it, by any stretch - because we would like less fees, taxes and paperwork moving forward as we get older, and I don't want to be constantly checking the market & buying & selling stocks (want buy & hold long term with decent dividends and possible franking credits), I should probably steer clear of managed funds, due to volatility of managers & larger fees, and look more closely at the ETFs and the LICs.

Is that right?

 

You looked a ASX game skater?

http://www.asx.com.au/education/sharemarket-games.htm

 

No, Isn't that more oriented to those who want to be active. I don't! I just want to buy something & sit on it while it pays dividends.

 

My view, yes, ETFs and LICs are ideal vehicles for what you describe.

 

Awesome! I am also wanting something pretty stable with minimal risk. Yes, I'm aware that all investments carry risk and accept that, but if I'm going to put a sizeable amount into it, then I want it as risk free as possible. Would I be wrong to think that the bigger, better known ones are more along the lines of what I'm looking for?

Also, what do I look for when attempting to do some due diligence in regards to these funds.

I was planning to start small and just put 10k on something, wait it out a while & if I'm comfortable put some more in. Or is that too small an amount to start with?