ASX200 (XJO) 7000 here I come....

Depends whether this comes under the category of “yield trap”. Starting yield is far less important to me than income “growth” given the likely long period one might need to fund retirement.

Of course if one’s wealth is large enough it doesn’t really matter much how one invests it.

 

Yield. Wrong.

Yield can stay at 4% forever as far as I'm concerned. It's dividend over price. Go from there with any calcs.

 

True. But in a normal rational market which its not always the price and dividend should have a close relationship. So 4% would be around the spot that dividend over price sits. And I think that even though there are times which that gap in the relationship widens or narrows it generally come back to the middle.

 

While yield trap could apply to a particular investment or product within a particular class. I don't know if we can categorize the average yield in the property trust or contributory mortgage segment as a yield trap. Just like equities, investing in property trusts or Contributory mortgages should be diversified and spread across multiple assets / funds.

 

@Big Al, this might be of interest albeit I’m never too sure about how reflective of the real world the data / time period is that’s used by Peter for his listed property chart. Regardless it’s the concept that’s of importance.

Most investors are wrong on dividend yield as income

 

Thanks mate. Remember I was anti shares only a few years back. Property was all i was willing to invest in. So even though I have seen the light it’s still taking me some time to fully immerse myself in just shares.

I feel like i needed the property holdings and the yield they provide to feel comfortable to then move into shares. I now have that property yield comfort blanket, so I can put everything from here on into shares. In saying that the property trusts have performed really well in the last few years that I have held them. I have a few of them that have done 15-20% return each year for the last 3 years. So I did manage to get some decent growth along with small increases in the initial yield.

 

Despite what I posted if in the same position I’d likely be hanging on to the property trusts. Peace of mind is critical when it comes to money.

 

@Big Al I haven't kept up with the amount of info overload here, but are you holding listed or unlisted property trusts

@The Y-man has a number of REIT's

 

I hold 2 listed reits. CLW & CMA.
15 unlisted funds:
6 with Charter Hall
3 with Centuria
5 with Fortius
1 with Heathley
1 with Sentinel

 

Tell you what @The Y-man. You can be the pc’s listed reits guy and I’ll oversees the unlisted department.

 

It's coming into that range again as the bull climbs slowly up the stairs ,as the bears jumps out the windows..

 

There is talk among bears of double top forming and then all downhill from there.

Would be interesting to see what happens but either way my plans are all set DCA irrespective of market going up or down.

Cheers
Oracle

 

Nearly there.
Not a bear, just charts n chat.

 

Yes I have heard of this double top phenomenon. With that though what constitutes a double top? Does it have to reach the exact same top? Or within that top by so many points? Because we have gone to the top and back again close to that top a few times now.

So could this be a triple or quadruple top? And is that worse or better than a double top?

 

I am no expert on technicals but I think it needs to convincingly move higher and possibly have a weekly close above previous high.

Search online I am sure you will find heaps of definitions.

One thing is for sure all the algorithmic trading would jump in as soon as technical signals are confirmed up or down.

Cheers
Oracle

 

This double top


Turned into
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.
.


All Ords accumulation index.

It seems at the moment every time the market sets up a pattern that could launch the next substantial move it reverses. Sideways until its ready to show its hand I guess. Low discount rate vs low growth outlook.

A plan to invest what you can as soon as you can is so much easier (and ultimately more rewarding for most) than second guessing the market.

 

There has been several recently in the media talking about the mechanics of a ''D-T'' ,but it's also vital to understand why and if there is anything almost guaranteed to send you broke from their track record is listen to them..

 

For when the market does decided to head higher. A bit of data to help strengthen that investment muscle and mentally prepare for future DCA's at all time highs.

Should You Invest Or Wait When The Stock Market Is At An All-Time-High? - Engaging Data
(the data presentation in the link is seriously worth getting your head around)

 

Quote..
The key takeaway is that in the past several generations of investing, the market has done well and most of the time, the market is within 5% of its ATH. If you waited for a large dip to invest, you could be waiting for a long time and you would have missed out on a large amount of the gains.

Thanks for the link..