Just went 95% cash in Super - Share Market Correction

Discussion in 'Sharemarket News & Market Analysis' started by sash, 25th Oct, 2018.

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  1. kierank

    kierank Well-Known Member

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    My post wasn’t aimed at you :D.

    It was for all the other PC members :p.

    That is why I used the word “one”, not “you”.
     
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  2. Phar Lap

    Phar Lap Well-Known Member

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    Yeah, no worries mate.
    Good thing is with super for us, its like a little bonus as we never planned it, just came courtesy of Govt. Mind you, Im self employed and only a small amount (new car worth) but the misses has raked up a decent little balance (several laps around the globe worth @ 5 star :D).
    Cant wait !
    Well, means Ill be older so I guess I can wait ...:rolleyes:
     
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  3. wylie

    wylie Moderator Staff Member

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    I'd moved partly to cash when our super was dropping. A few weeks ago I changed things up and put more into an aggressive area. I think from memory we'd suffered a drop of about $30k in a month and it has risen probably $10k since moving it back.

    It's funny how super is something we looked on as "gravy" and were very happy to have it sit in a high risk area but when you get within weeks of being able to take it out without cash it becomes a bit more "front of mind" and I wanted to protect it, especially having watched it dropping.
     
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  4. Phar Lap

    Phar Lap Well-Known Member

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    Tracking our super, what we "lost" late last year from Aug to Xmas, has now been returned + extra in just 2 months without changing a thing.
     
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  5. sash

    sash Well-Known Member

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    Just checked...my super is up 20k from the low point last year....the move to cash was well worth it.
     
  6. Foxdan

    Foxdan Well-Known Member

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    But how much would it have been up if you did nothing....
     
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  7. sash

    sash Well-Known Member

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    Based on what with others...they were down 10%...they have just go head now.......a couple of % points....
     
  8. Islay

    Islay Well-Known Member

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    @sash i don’t mean to be rude but just so I understand did you move approx $500k super to cash on October 25 2018? Then some time shortly after December 24 2018 reinvest the 500k back into the share market? And now you are only up 20k? Am I missing something? Sorry I have not read all 11 pages :)
     
  9. sash

    sash Well-Known Member

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    Nope I moved about $437k odd...now it is over $460k.

    I reinvested in Jan ...initially in conservative balanced and then into normal balanced with Host Plus....so yes I am over 20k up.

    I had 37k in employer fund and it did nothing comparatively . I left that invested during the period.
     
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  10. Islay

    Islay Well-Known Member

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    Ok thanks, I must still be missing something though because the closing price of the all ords was 528 points higher on the 8th March 2019 than it was on 25th October 2018. I would have thought your gain would have been much greater than 20k on that amount of money in that time period. Maybe it was transactional costs or fund costs
     
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  11. Brumbie

    Brumbie Well-Known Member

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    Is that a cash fund? Pretty sure it is a mixed asset fund. You cannot get that kind of return of 10%pa from cash. I suggest you fluked it and timed the market. Well done!
     
  12. sash

    sash Well-Known Member

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    Miixed fund with heavy investments to other assets classes...
     
  13. Phar Lap

    Phar Lap Well-Known Member

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    Pity you didnt announce this when getting back in. After the fact is a little sus on the face of it.
    But , good luck to ya.
     
  14. sash

    sash Well-Known Member

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  15. MWI

    MWI Well-Known Member

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    You see the issue for me with this approach is fine when smaller amounts are at play but would you do the same say with $5M instead of $500K? It seems like gambling rather than some sort of investing strategy, yes or no?
    While I don't doubt for a minute that a share can have much greater % growth than IP, the issue for me is the risk involved through liquidity and leverage. Could I sleep at night with such exposure to the ASX or other more volatile markets than property exposure (with or without Leverage)?
    The answer for ME is resounding "NO!".
    So I dabble in shares until I can buy another IP. It was when I understood that non liquidity and leverage in property makes it actually attractive to ME to invest for % growth, then shares become my income exercise while IPs become my wealth creation exercise.
     
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  16. sash

    sash Well-Known Member

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    Maybe...but diversifying a little won't hurt....
     
  17. MWI

    MWI Well-Known Member

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    Agree, I do it too especially if I am uncertain, as I am always learning but with certain aspects I am questioning...perhaps I should specialize in what has worked for me, in what I am good at, rather than generalize like most do.
    Remember what Warren Buffett said, "Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." and “Diversification is protection against ignorance. It makes little sense if you know what you are doing.” and “Wide diversification is only required when investors do not understand what they are doing.”
     
  18. Illusivedreams

    Illusivedreams Well-Known Member

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    Market is preforming really well,
     
  19. Tonibell

    Tonibell Well-Known Member

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    Just had a look and the XAO was at 6754 - so up over 17% in 8 months.

    No idea where it goes from here - but glad I’ve stayed in this market and some others. Having a good look over the portfolio however.
     
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  20. Phar Lap

    Phar Lap Well-Known Member

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    Its looking very very toppy. Time for some profit taking.
    Its been a great ride up to here. OP must have missed so much by switching to cash. Madness! Nows the time to do that!
     

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