The Dow Jones and ASX appear set to fall back to supports. There might be some measure by central banks to support the market. See ASX chart attached. ASX going to 4286 otherwise lower. We can expect some selling of gold positions if this gets serious. It is apparent that this market will take a serious hit soon and gold equities with it. The wil recover though, but you might want to stay away from any intangibles. I' inclined to keep MGK. AAM will probably hold 19c support. There is the risk that funds will sell gold to cover other positions though perhaps funds are better prepared this time. :) What do you think? They are playing with your money. :)
Currently travelling so don't expect speedy insights.
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Andrew Sheldon
www.sheldonthinks.com
Investment Strategy
If you are investing for the long term, you still need an investment strategy. Dont be fooled by the rhetoric of fund managers. The reason they advise you to 'buy & hold' is because they dont want to compete with you in sell-offs. Markets and industrial sectors are cyclical, so they demand trading to get the best returns. Fund managers actually cant hope to match the performance of small investors (if you are half good) because they have to manage huge amounts of funds and charge you a fee besides.
MY ADVICE is (i) look at a range of market indices and decide upon what level of correction would give you the justification you need to get in & out of the market. It might be a 5-10% retracement or a break of trend. (ii) Diversify if you dont have an intimate knowledge of the company or management. More than 30% in one company is aggressive.
The Dow Jones and ASX appear set to fall back to supports. There might be some measure by central banks to support the market. See ASX chart attached. ASX going to 4286 otherwise lower. We can expect some selling of gold positions if this gets serious. It is apparent that this market will take a serious hit soon and gold equities with it. The wil recover though, but you might want to stay away from any intangibles. I' inclined to keep MGK. AAM will probably hold 19c support. There is the risk that funds will sell gold to cover other positions though perhaps funds are better prepared this time. :) What do you think? They are playing with your money. :)
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