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Tarby777

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Hi all,

 

Just wondering whether anyone is being brave and ploughing any money into Aussie shares at the moment. I'm keen to start a portfolio but the advice I've had from friends who really seem to know their onions is to hang on and keep it in high-yield cash accounts until the dust settles from the latest round of wobbles.

 

What are you guys doing?

 

Cheers,

Tarby

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Hi Tarby

 

 

What you are looking for in your investments i.e income, growth etc and how long you are looking to invest for should come into play.

 

Will you be playing an active role by buying and selling or are you looking for a buy and hold strategy?

 

Consider your investment asset allocation also, diversity across asset classes etc etc.

 

Certainly there looks to be some attractive yields on offer at the moment along with low prices but of course the markets are still extremely volatile.

 

Regards

 

 

Andy

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Hi Andy,

 

Just looking to buy and hold for the dividends and the franking credits really... following the advice in Paul Clitheroe's book about spreading a few bucks across several blue-chip outfits such as BHP, Woolies, a big 4 bank etc. I think BHP is at something approaching a 12 month low right now, so it seems pretty tempting but my friends reckon there are more falls to come. It's a toughie... there's not much point in paying over the odds but one of the points in the Clitheroe book is that it's incredibly tough to predict what's going to happen, and he goes for the old adage that it's time in the market that counts rather than market timing. Maybe dollar cost averaging would be the go...

 

Cheers,

Tarby

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Hi Andy,

 

Just looking to buy and hold for the dividends and the franking credits really... following the advice in Paul Clitheroe's book about spreading a few bucks across several blue-chip outfits such as BHP, Woolies, a big 4 bank etc. I think BHP is at something approaching a 12 month low right now, so it seems pretty tempting but my friends reckon there are more falls to come. It's a toughie... there's not much point in paying over the odds but one of the points in the Clitheroe book is that it's incredibly tough to predict what's going to happen, and he goes for the old adage that it's time in the market that counts rather than market timing. Maybe dollar cost averaging would be the go...

 

Cheers,

Tarby

 

 

Hi Tarby

 

Certainly this is where a lot of people see good value right now, Blue Chips, sustainable yields with good levels of franking. It is a toughie as there almost certainly will be more volatile times ahead but again trying to time is pretty tough if not impossible!!

 

Dollar cost averaging can be a good idea but into direct shares can be expensive considering the brokerage involved (dividend re-investment aside), maybe also consider a managed fund or even an Exchange Traded Fund if you are keen to drip-feed in.

 

How are you structuring things tax wise?

 

You may want to consider a tax efficient structure/vehicle especially if it's long term.

 

 

Andy

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