Peter Thornhill 2018

For most people that advice or common knowledge sounds uncommonly stupid ,because it's just so simple to understand and unfashionable in certain circles..
That seems to have stayed with several people ,debt free-even through boom times ,contributing to a desire to hold onto things when most otherwise wouldn't ..Top day in the free World..

 

Hi @Nodrog and all,
Where can one get access to updated XJOAI charts and data? I think commsec has it online but not on the phone app. Same as asx doesn’t make it available.... thanks in advance.

 

Don’t know where online, especially for accurate data. On the odd occasion I use the following free version of the software which provides quality data including that for a number of accumulation indexes. It’s what I used to create the chart I posted earlier. Bit of an initial learning curve but quite easy to use:

https://www.incrediblecharts.com/free-charting_software/incredible_offer.php

Why the interest in the charts, are you thinking of becoming a trader?

 

xnt, might help

 

@Inte

@Intrigued_again that’s great. I’ll learn how it is calculated shortly!

 

Haha certainly not. The accum index is a big part of the buy and hold and don’t panic philosophy. The XJOAI whilst not perfect, is a good reflection of why the long term and compounding works...I think. But have to read up more on how it’s calculated... same with XNT which is looking handy too...

 

As risk mitigation the general consensus on here s having a percentage of your money in risk free (low - no such thing as zero risk) assets such as cash or bonds. This is to cover living expenses during a downturn avoiding selling equities at the worst times.

This risk free percentage should be based on numerous factors including risk appetite, life stage (from starting work to retirement) and I believe general market sentiment (measured by CAPE and other things).

E.g if you're a high risk taker, in your 20s and the market has just crashed I would suggest you would use the minimum allocation to risk free assets - ie fully invested in equities. Conversely if you're at retirement age, risk averse and the market is peaking then I would say you should maximise your risk free allocation.

What is the formula for this allocation? This is a very difficult question and would require a fair amount of research and back testing. I guess this is where a good financial advisor would add value. However, as we can't predict the market I don't think this needs to be an exact science. It's better to have a plan in place before it happens but it may be enough to have a range from minimum to maximum of the risk free allocation. As the environment changes adjust accordingly.

Not advice

 

Not sure exactly what you are after, but investing.com has the accumulation chart:

S&P/ASX 200 Accumulated Chart - Investing.com AU

Not sure why this thing is so hard to find? You would think the ASX themselves would push this data as it is amazing how many 'smart' people I have spoken to who just dont seem to understand that a huge part of the Australian market is not incorporated in the index!

 

DCA is a good method. I use this method every 3months. I also using pretty much your adjusted method too. From time to time other savings grow and i have a look if anything is going cheap. Then the amount purchased would increase for that 3 months (The DCA amount stays the same).

I find it works good for me.

 

Spot on! This is what I'm trying to work out..

Think I'm not happy with risk free percentage, on the conservative side..

Like the idea of a range, depending on things that would effect me, economy or sector employed, etc.

Thanks for your input

 

Absolutely! it’s a crucial example of the long term returns. I dunno!