Where to invest cash in this market

Discussion in 'Share Investing Strategies, Theories & Education' started by Phar Lap, 30th Aug, 2019.

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  1. Phar Lap

    Phar Lap Well-Known Member

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    Last edited by a moderator: 3rd Sep, 2019
  2. Nodrog

    Nodrog Well-Known Member

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    I’m happy for you to deposit it into my bank account:).
     
  3. Phar Lap

    Phar Lap Well-Known Member

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    Is it safe there ?
     
  4. SatayKing

    SatayKing Well-Known Member

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    Don't trust him. Trust me. Me. Me. Me.
     
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  5. Phar Lap

    Phar Lap Well-Known Member

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    Answer the question!
     
  6. Big A

    Big A Well-Known Member

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    That’s the dilemma. In the bank you will get yourself a dismal 2% right now. And soon enough you might not even get that much.

    You can give it to @Nodrog. Is that safe like sort of like giving it to the government? Nodrog Bonds.

    Option I always like is invest it in a few cars. Now on the face of it, sounds like a bad idea. But if the share market tanks 30%+ , the 20% depreciation loss on a Italian car might turn out to be an outperformance of the market.:D

    And just like franking credits you get a bonus returns in cars with the enjoyment of driving a automotive art piece.
     
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  7. Redwing

    Redwing Well-Known Member

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    Gear Up

    upload_2019-8-30_5-44-49.png
     
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  8. geoffw

    geoffw Moderator Staff Member

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    @Nodrog will wisely invest the money and it will earn good returns. Just so long as @Phar Lap doesn't require any of it again.

    It's all about you!
     
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  9. SatayKing

    SatayKing Well-Known Member

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    If one view is the show will go on then isn't that an indication any reluctance to invest funds in the share market a contradiction?

    I'll wait for this indicator to be there before I invest. No wait, this indicator isn't in the right position so I'll sit on the sidelines for a bit. Hmm, maybe these indicators will go this way so I'll wait for that to happen.

    End result is nothing and sitting on the sidelines waiting will be the probable outcome.
     
  10. Phar Lap

    Phar Lap Well-Known Member

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    Can we have a serious discussion about where to put cash before this crap fight happens? I get the laughs but its time to address the question in a mature manner.
    Or does nobody know what to do?
     
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  11. Big A

    Big A Well-Known Member

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    I have this argument with myself every day. :D
    And I guess that’s why we are on here debating back and forth each day. We are trying to re assure ourselves that the decisions we are making and paths we are choosing are the best ones.
    In all seriousness I don’t think we need to race down to our bunkers just yet, I do feel there’s a good chance of a 10-20% correction coming. Now that’s not catastrophic by any means and is a normal part of the cycle.

    I am keen to go back all in the market but just to be sure I am going to sit it out for a few more months. While there is always a chance that a correction doesn’t arrive in the next few months, I also don’t think there’s a risk I will be missing a major rally in the next few months.

    So my scales say more chance of a downside risk then upside risk in the next few months. So sit and watch I do.

    @pharlap , back to your question. I think you pretty much said it. No one really knows what to do with there cash right now. Options are limited on a safe option with decent returns. For me the only thing is cash in bank. UBank offering 2.47% on accounts holding up to $200k.
    CommBank has a online saver offering I think it’s 2.1% for the first 5 months.

    And this is why I think any significant downturn won’t last for long. There is plenty sitting on the sideline waiting to go back in. As soon as we see any decent drop everyone will pile back in.
     
  12. Nodrog

    Nodrog Well-Known Member

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    Of course, trust me I used to work for the Gov’t:cool:.
     
  13. Nodrog

    Nodrog Well-Known Member

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    Very safe, I’ll keep it stashed down the front of these:

    1DEE4937-0F0A-48BC-8C49-235B546EFAC4.jpeg
     
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  14. geoffw

    geoffw Moderator Staff Member

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    I'm of the view that nobody really has any idea what's going to happen. If people really did know, everybody will be putting their money on that outcome.

    I have a small diversification, mostly with equity based ETFs with a global spread, plus some bonds, REITs, direct real estate, cash and some gold. I have far less idea than just about anybody here about the wisdom of my approach, and it's just as likely as any other approach to crash and burn. But with a spread, I feel a little safer, which means I have something of a sleep at night factor.
     
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  15. geoffw

    geoffw Moderator Staff Member

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    Bonds are good for safety but the growth potential is limited.

    Having said that, I have some VGB which I bought just for safety and it's had a nice growth spurt.
     
  16. Redwing

    Redwing Well-Known Member

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    @Phar Lap

    "Nobody knows nothing"

    Some people will make educated guesses and be correct, others will make educated guesses and get it wrong, we wont know until the dust settles whom is whom

    Some will stay the course and plod along as per their strategy (I can't see @Nodrog or @SatayKing making any big moves)

    Neobanks UP and 86400 are offering 2.5% on Savings, I think only up to $50k for the former and to $100k for the latter
     
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  17. Redwing

    Redwing Well-Known Member

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    @geoffw It's been an odd year :D

    upload_2019-8-30_6-49-28.png
     
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  18. Nodrog

    Nodrog Well-Known Member

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    When growth turns to **** all that’s mostly left is dividends. That’s where my focus is. Additionally active Mgrs currently out of favour who are likely to do better in adverse conditions or at least continue to pay you an income whilst most other investors panic over their capital drawdowns.

    As for cash perhaps stop focusing on it’s poor returns and consider the greater value of its “optionality”.
     
  19. truong

    truong Well-Known Member

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    Not that the Big One hasn’t tried to make its entry but each time it was scared off by people not able to hold their fire :oops::D. I suspect it will turn up eventually but not in a way that people expect. It has the knack for taking us all by surprise!:eek::eek:
     
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  20. willair

    willair Well-Known Member Premium Member

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    Maybe have a look at the old site and the lead up too the GFC and the wild west of investing..

    Then break all it down on the advice that was given ,and the way people invested through that period and then was relegated to investment history it makes very interesting reading as some were blown out of the water never to post again,some during that period became seller's going from contributing money to taking it off the table ,and to some proved a master stroke of timing..

    Myself most advice that was floating around that time was 50/50 and was never short of vocal opinions and the added expletive ever now and again,one could have done nothing ,never looked at so called ''GURUS'' as i believe they solve for themselves ,not their clients..

    Or you could look at the whole picture in front of you in different constant news feeds 24/7 ,from a investor and financials perspective and do nothing ..

    That's what i intend to do nothing this time,unlike last time when i put a few unencumbered property titles on the table and bought into several banks ..imho..
     
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