Opportunity is knocking!

Haha - no. But you're selling, right? Might need to bring that forward!

 

buying to hold long term. Would happily not look at it for 5, 7, 10 years. Except i have to since i want to buy more.

dont put enough time into this to actually trade, but luckily I know enough about how hard trading is to realise this.

 

Low doc??

 

.........and, those mind enhancing pursuits will be even more important when you've entered a position that rises initially and then plummets wiping out 15-20 % of your entry price. I went through this in 2008 with credit put spreads.Thought I was fancy. Even though downside was capped losses were gut wrenching. Same nausea with long positions at the time. The mindset stuff is important to prepare but also endure or you'll freak yourself out. I'm much older than you so these days I'm better at it. You cannot totally master this stuff unless you're Howard Marks or Warren Buffet. For most on here we are playing a long game. Buy at the right price for your pockets and strategy and then try to tune out of the noise. Easier said than done

 

I have a whole list of execution orders at different prices , buy, sell etc. I didn't create them but I've approved all of them.

I have a 3-10 year timeframe so I'm not looking to trade with the bulk of it. But some orders will buy and sell if a certain percentage is achieved in a certain period of time. Like Friday I increased my account by around 24k in a few hours and it sold.

Anyway alot more to go. Generally have a long term view.


@Player what are your top 3 tips?

 

Most likely not, I can’t see us getting a good price right now as things are going. Looking at maybe selling another instead.

 

Hmm I thought they stopped low docs.. I might contact a broker to see if it's possible, I'm happy to pay a premium rate to access some equity

 

There are a few around

Search
I started a thread on ‘best low doc product’

got a few replies and a personal pm which was helpful

 

This was me too. Sold puts on Macquarie bank - and lost $8k in a day. Almost threw up.

Panic sold - and the next day, I would've been back in the money and the put would have expired worthless. I got very good at risk management after that day!

 

You need income of some kind - even with lo doc. And an accountant to sign off on it.

 

I've only got gross rental income of about 110k, would they take 80% of that into consideration?

 

And Babcock

 

I have never had an issue with low docs, my accountant signs off on income

 

Was thinking in terms of the other guy who you were responding to

 

Is there any debt attached? You still need to service the loan regardless or lo-doc or full-doc, but banks will take rental income for sure. 80% at some lenders.

 

Except for the other once in a lifetime opportunities - some of which have happened in our lifetimes ...

List of stock market crashes and bear markets - Wikipedia

But yes, buy when others are fearful bodes well right now and over the next few weeks I suspect... there are all kinds of Govt shutdowns happening as we speak...and a betting man or woman would probably speculate there is plenty more to come. So markets are likely to $4i7 themselves all over the world again this week I suspect ....

 

I've done okay from longer term trading in the past. Not day trading though or even weekly. Usually NAB and ANZ are my preferred trades for this. Moving forward I am looking at banks, but mostly index ETF's to capture ASX 200 or 300 and for yield. I am totally accepting of the fact that whilst volatility will continue and there will be relief rallies, the market could fall considerably further.

Last Friday my orders were close to being filled......then the rally. They are still open, so we'll see. I am after securing yield as an income stream even if dividends will be cut somewhat. For me very long game now. Am drip feeding though. Current orders are SMSF. Personally and some trusts are illiquid. Term Deposits maturing next month and in July. No rush. I might actually move forward a property sale or two as well. I will be aiming to lock in commercial property yields (as they were 10 years ago post GFC) with no mischievous tenants or roofs, or land tax to deal with

 

For those saying they are chasing yield.... how do the yields compare to cash cow resi?

For example, 135-140K of cash would pay for a 20% deposit + stamps + legals on one of my Dual Occ's. By using cash instead of debt to fund 20% + stamps + legals , the net cash flows are 17-18K NET on Marginal Tax Rates of 32.5% or 37%....maybe a touch better if you can qualify at one of the lenders offering sub 3% IO fixed rates now. That gets you 17-18K net return on 135-140K , or 12.15-12.5% NET. What stocks are beating that, and by how much?

 

Agree that there'll be a lot of opportunities that arise.

No idea about the timing of it though, but I suspect there's a whole lot of potential for strategies to go wrong. I.e. market carnage may just be starting. We really have no idea how this will play out or whether current valuations hold. No one really knows what's going to happen next.

There's a whole range of scenarios that aren't ridiculous right now. The uncertainty in the marketplace is high:

• We could have a month lockdown here, think we beat this health crisis, only for it to reappear a few months later. This happens, unemployment has a real chance of skyrocketing and the stockmarket is overvalued at the moment (and housing).
• We could have a complete funding mess, corporate debts could get called in around the world, origination issues uncovered somewhere in the world, and a health crisis, spoons into an an economic crisis that then turns into a financial crisis. Central banks will obviously fight tooth and nail against this (as seen by last weeks liquidity interventions). This happens, the stockmarket is grossly overvalued at the moment.
• We could have no monetary firepower to add proper stimulus into a recovery. Europe may not have a proper fiscal response either.
• The US could be heading to a complete shutdown. The worlds biggest market, closed. This may rock markets and the stockmarket could be grossly overvalued.
• Even in benign cases, the actual virus may be at the very early stages of its journey. It could circle back to China as they reopen
• One of the worlds largest companies may be found out with a revenue drop, go under, and cause a giant ripple of contagion to spread through the market.
• There may be other complete health factors so far outside our minds as possibilities that could play out too.

Two months ago, Australia being in this situation would be the 'extreme outlier' probability. 6 months ago, anyone who would suggest today's situation actually playing out would be laughed out the room.

We may perceive something as cheap and undervalued at the moment. I can certainly appreciate that. Its 20-30% cheaper than it was a few weeks ago. There's plenty of scenarios where this is the case and buying now is an amazing opportunity too (these measures contain spread, and covid19 dissappears pretty quickly and stops spreading!).

In general, my assessment of the risk factors are enormous at the moment, greater than they have ever been in my lifetime. There are so many unknowns at the moment.

As an investor, you want to be adequately compensated for playing in this environment. Many will get their hands burned and won't know what hit them (some already have).

 

I agree Redom - I'm personally not buying now, just getting ready.

There's a lot that needs to play out, and this is just the beginning - most bear markets go for around 9 months, more or less, so there's no rush.

"Don't try and catch a falling knife" is something that comes to mind.