Sign of the Times

Yep @austing has definitely changed my thinking towards the share market. Big thanks for all your efforts @austing, I mean Peter... I mean Captain Dividend!!!

 

Careful regarding @austings info. Every 4.3 posts the guys been on the home brew.
No wonder he ends his posts in 'this is not financial advice'.
The blokes been ****** the whole time he joined.

 

Peter Thornhill and LIC threads are the main ones. To be honest, there's not that much to it and it boils down to:

- Buy the old LICs (MLT, ARG, AFI, BKI etc) when you can.
- When there's a market fall you buy even more.
- Participate in any discounted rights issues.
- Collect your dividend.
- Rinse and repeat.

 

Thank you for the kind words. But feeling quite embarrassed about it all. There's other great posters here.

There's nothing savvy about what I do. What I've tried to get others to focus on is the excellent income available from Shares and to ignore the capital volatility.

The other thing is that investing in the sharemarket can be very simple when you are made aware of diversified products such as ETFs and LICs. Simple, low cost and next to no work required.

Of course there's nothing wrong with property as an investment. I just don't like all the hassles and expenses that go with it. Others aren't bothered by this and love it. But it's certainly not what I'd call true "passive" investing.

But it's nice to know that others find my posts useful. The reason I like posting about long term investing in the sharemarket on a property forum is that Property investors tend to be long term focused. I don't post on Shares Forums because they're dominated by "short term" traders.

Of greatest interest will be too see how many here are still keen on Shares when the next crash happens. That'll be the real test.

 

Actually that's when I'll start getting interested

Austing, do you not espouse reinvesting the dividends bc one needs them to fuel their retirement - assuming thy're relying on dividend $ to fuel their lifestyle?

 

Actually, you might be onto something here.. I've just crunched some numbers:
$1.2M median @ 80% LVR = $960k loan
$960k loan @ 4.5% P&I = $4.8k/month or $58k/yr

Stress test that mortage at +2% and repayments are $72k/yr

If you've got 2 incomes @ $100k ea, that's about $73k ea or $146k total after tax. So after mortgage repayments, they've got nearly $90k left over!

If there were 2 x $80k salaries, then they've got about $120k combined after tax, and $60k left over...

both seem like realistically achievable scenarios, and are probably somewhat common in Sydney.

 

LOL.


It's referred to as "Investing Under the Influence".

 

Yep. It's easy for people to say just buy more when the market tanks but how many have the spuds to really do it? I remember during the weeks after the GFC it literally felt like the world as we knew it was going to collapse. Of course it didn't and almost 10 years later we hear of these hero stories of people who cleaned up but how much of it is really true? I dunno. I don't feel global economies have even really fully recovered from it, everyone is still heavily in debt.

Also have to remember every crash and what causes it are different as are the recoveries.

 

Me too. I love buying in a down market.

 

Me. I have done it. I will let you know how it turns out

 

thanks, not sitting on our hands that is for sure

 

yep, as per thread a sign of the times

 

Exactly. That pretty much sums up just how rediculously simple it can be. There's nothing savvy or clever about it.

Trouble is @KDP now you've posted that we've got nothing else to talk about.

 

Yep. Totally doable, and they service the 7.25% banks are asking for.
So Sydney 1.5m median house in 3 years it is.

What about Melbourne? Reckon it can hit 1million median?

 

are these LIC (or in general all LIC) have SANF, and why? looking the chart price in the last 10 years, they go up and down in price just like any other shares..... They are paying roughly 4% dividend and some only paying in the last 2-3 years...

 

Just to continue on... Remember, all crashes are different. It's seems logical to throw money into a market after something like that years later because you have had years to digest it all.

The next crash will be totally different. Could be caused by the outbreak of world war 3, an alien invasion, a virus that wipes out 25% of the planet. Anything really. It's not just going to be Sally and Leeroy didn't pay their mortgage in Detroit again BUT that's ok because the fed will bail everyone out again like last time and the market will recover. Sorry but that's all fish and chips paper now.

 

I really suggest you read the LIC thread, it's been rehashed there a few times.

The old school LICs that I mention have a long history of performance and rising dividends. Even in market turmoil like the GFC they maintain the dividends relatively well to enable investors to ride out the volatility in the market.

 

... but at the end of the day crashes come down to supply versus demand, I agree the triggers may be different but that is the nut and bolts of it.

We had a mining boom/crash because China no longer required our resources, crash.

If investors/ buyers/oo stop buying we go from low stock to ....oversupply/too much stock, this can happen because interest rates rise, affordability, economy, job losses, market sentiment.... etc etc.

 

Your work is never done, case in point being some of the follow up response in this thread.

 

Not really, when the share market crashes everyone goes down with it. Companies that are very profitable still lose a big chunk of their value. Some business that are completely viable in normal circumstances can't refinance a commercial loan or meet payroll because the bank pulls their overdraft and they go kaput.

As the old saying goes, markets can stay irrational longer than you stay solvent.