Just went 95% cash in Super - Share Market Correction

I have been 100% cash since July as transferred out into a SMSF and waiting for a good time to get back in to the funds/equities. Most aggressive funds with overseas exposure such as AIM by Charlie Aiken has been down by about 15% in last 4-5 months. The problem I see with these funds are if they are long and short they are only shorting a small amount. And I am not going to paying someone a management fee just to hold cash either

 

I have been hesitant in moving my Super from High Growth to Cash as I still believe I have time on my side. My figure isn't that big by comparison and over the past couple of months it has been trending down. It went from $129k to $124k by mid December.

To my surprise however, it has steadily come back up over the past couple of weeks. As of this morning it's back up to $133k. I'm glad I trusted my gut instinct.

 

Yeah @Air_Bender the problem I find with predictions is that is what they are. I am prone to having a guess too but attempt to resist taking any action on them. Maybe it's the way our brains are wired to take action of what we think will happen at some future point.

Make enough predictions as a group and it's probable one of those predictions could be right - or none will be.

With the share market a lot of it seems to be a huge number of people buying lotto tickets but to be honest I've not a clue on what is going to be right or what is going to be wrong about price movements today, tomorrow or at any other point.

 

Fair point @SatayKing. I'm no expert either when it comes to these types of investments and I'd be lying if I told you I didn't consider moving to Cash also. To be honest, if it had dipped below $120k I probably would have. But I always try to remind myself I have decades ahead of me before retirement and that usually calms the nerves.

 

I think the decade ahead maybe slower for the US, but hopefully international and emerging markets take up some of the slack

 

What!!!

Cash out because your portfolio drops $9,000!!!!

I spent more than that on my recent cruise

 

I know what you're getting at @kierank and I agree with you to a large extent.

Nevertheless, it is all relative to the amount a person has invested plus their attitude. To me it's quite understandable. As I indicated each of us is wired differently. I ain't @Air_Bender and @Air_Bender ain't me or anyone else.

 

Thanks for the BURN! LOL

 

Are you still cash? Just out of curiosity, I was buying in December and I’m quite happy with that. Buy the dips don’t sell them.

 

My holdings in my super fund are measured in units. The unit price has been down for a while so I'm buying extra units now while they are discounted.

 

I gorged myself from late Oct when the market tanked till approx 3 weeks ago when I picked up NAB and WBC cheap. So far, so good. Am up $14-16K to date depending upon the time of day.

But I bought for a LT dividend income stream, so I'm not trading per se.

A couple of companies have surprised on the upside from a dividend announcement perspective. Quite significantly actually from a % perspective.

 

Good, I’m not trading either just saw an opportunity to add to a my holdings and I did.
Just wondering what the OP is doing now as i remembered reading this thread and questioning my sanity for buying haha.

If you arent going to buy after a 20% drop then when are you going to buy? Probably around 10% higher...
Each to Their own. ✌

 

Cash is probably losing value right now.
Can't predict the direction of stock market beast!

 

Very few can so welcome to being average or below. It's a huge pool and most of us are in it.

 

Maybe when the after tax earnings per units at the start of a new beginning of a semi-bull turnaround begin growing at a 20 percent annual rate ..

 

Yeah that was 8% ago...

 

Now down to $9K. It's an absolute yo-yo.

Best advice is to not look at your portfolio and check in again in 10 yrs.

 

Fixed.

 

If the charts from @Alex Straker give any indication, February maybe another opportunity to buy at discount