Where to invest cash in this market

I’m sure there is, probably gems as well. The reality is I’m not prepared to put in the time to sift them out. It’s not a criticism, just a reality arising from me re-allocating my time.

Out of context posts are so easily seen as hand grenades rather than “for consideration”.

I don’t wish to throw hand grenades and I don’t wish to put in the time to prosecute in depth any beliefs that I have that may differ from the consensus. The occasional affirming post is not really me, So, I find it hard to see how I have meaningful involvement on a casual basis.

You do a great job keeping the threads active – I‘m certainly not having a go at that – just felt an explanation of why I’m fading to black was appropriate, unfortunately my last explanation done hurriedly, before departing on a trip seems to have offended. Sorry.

 

Whatever you choose I will look forward to your posts even if few and far between. But hopefully you don’t leave us altogether.

 

Could not have said it better myself.

I own LICs and am now about to embark on broad based index funds. The intention is to absolutely rely on a growing stream of dividends. Like @oracle, I am a bit apprehensive about my own inclinations to monitor and follow closely the fund manager’s performance, intentions etc. over a lifetime. I will continue to hold and buy LICs into the future but unlike years past, the rationale for just LICs appears to have dissipated with the rise and rise of index funds. It more and more appears that based index funds is easier and less riskier (albeit slightly) than an active manager even one as good ARG, AFI and MLT. It just appears like you need to assume a layer of risk and complexity that need not exist with indexing. Sure, it is slightly inconvenient (lumpy income and EOFY AMIT activities for example) but the simplicity on offer appears to be a powerful force.

Having said all of this, I will continue to hold all my existing LICs and will look at adding to them in the future. For now, I will load up for a bit on the index and see how I feel in the years to come. Good news is I have a LOT of investing left in me before I reach anything approximating retirement. So I am here to learn.

Finally, the one lesson I took from the recent proposal about abolishing refunds on franking credit is keep my mind open to seismic changes that can happen if one is lucky enough to be alive and able to be investing over a lifetime. So therefore, even though I am firmly on the “equities for (growing) income” bandwagon, I am trying to keep a slight door ajar should one day, the investing landscape change so dramatically that Australian companies don’t pay out dividends anywhere nearly as much as they do now or some other black swan event happens (tax or god knows what else) which means I might have to be open to the possibility that I might have to sell a small percentage of my portfolio to generate the income I need for living.

I hope not. But if I live through what the average aussie now lives to, I am going to see a heck of a lot of upheaval in my lifetime. So can’t hurt to have a slightly open mind to at least allow my subconscious get used to what is being presented as an alternative. Will be mightily uncomfortable to make that shift from what now appears to be a neat “grow a capital base big enough to live off the natural yield” to a more hybrid version practiced by investors in the US. But if it ever comes to pass, I will be glad that I was not closed off to the idea during what really is early and formative investing years.

Not advice.

 

I dunno if Buffet is regretful (and how accurate this is) - but check out this story of some sales he made!
Warren Buffett's Biggest Blunder Has Now Cost Him $16 Billion

 

Truth is I have scrolled through history of your posts, as there are some real great ones in there. I think you are closer to investing psychology Nirvana than anyone, in terms of overarching theory coupled with technical knowledge.
I believe in capital for income, though it will take more time to get my mind around it. Hence I appreciate repetition and arguing the same points many times. Not to mention the theory and logic is fascinating.
I can absolutely understand you'd be tired of certain repetitive aspects of this place, but there are plenty of us out there who would like to hear more of your view point. Sequence of returns thread was massive help for me in many ways, so thanks for your contributions.

@Nodrog and others, I appreciate what you do here, if it wasn't for you we'd go a whole week without scratching out some serious conversation. We all can't wait that long!!

 

I'm just thick and need continual reminders

Repetition is the mother of skill

but also worth noting

Repetition does not transform a lie into a truth.

 

It’s gets worse as one ages, I can attest to that.

 

@Nodrog You could tie up your cash here?

 

They are rather attractive.

 

But what is the penalty or break fee for a withdrawl?

 

I come under the nuisance tax category so no much I expect.

 

@dunno - I understand that you have better things to do then sift through the - at times - irrelevant information and chatter in these forums. I personally love that aspect of the forum - but I have time. I admire those with better things to do.

Also - I love your posts and contributions to this forum. I always read and look forward to your posts. They really get me thinking - and researching and questioning.

Repetition from yourself and/or others - is another thing that I like. Without it I would not have even started investing at all (in shares). I was once rather overwhelmed by the stock market and scared at the thought of investing money in what I was always told - was little more then a gambling machine. And yet - here I am - investing in shares and loving it.

I will miss you and your posts. I will seek out what little you decide to continue to post. And I hope you don't leave us forever.

 

Bitcoin...?

 

Only a limited allocation in a sensible portfolio. No more than 20%....

 

This market has got one last hurrah left in it. I can't shake the feeling that there's going to be some "good news" (and by that I mean, the smallest of positive news will be embraced by the market as if it was amazing) and it will be an excuse for one last lift. I wouldn't be surprised if it lifted another 20% from where it is now, before a drop of 40% late 2020 or early 2021.