This week has been generally positive for markets as we quickly approach the End of Financial Year (EOFY) but don’t be fooled that everything is good! Whilst the broader market rises to new highs, there are many companies being sold off and hitting lows. So we are still looking for fairly priced shares but the ones we like are now too high and likely to be the shares that suffer the most if something goes wrong again. Then there are shares that we like but have been falling and offsetting our other gains. This is normal and we are looking at buying more of the loss shares when we think they could return into favour again? Markets are anything but sensible when you look at the charts – prices can move up or down 50% during a year simply because some people buy or sell too much of the shares at the same time. Herd mentality is very strong as many follow a trend but then overdo it. We need to go against them at times, to eventually get better returns as we position ourselves in shares that the masses don’t want, and then benefit when they realise they should not have sold them and buy them back! Of course, this takes time and is impossible to predict exactly when so patience is imperative for success. Takeovers may be one way that we can soon enhance returns as the stronger look at buying the weaker (i.e. smaller) companies again. The Direct Portfolio is below:
The Managed Funds are about the same as last week and takes time to produce any significant changes when the markets are only moving up slowly.
The cryptocurrencies are slightly up from last week and are showing signs of at least stabilising. The Chinese authorities are still the main one damaging this market but let’s see if their effect wears off soon?
Whilst the total has started to edge up again, I thought it would be good to share the following two charts showing that BTC bought so far was $4,500 and value below:
Then there’s ETC which showed some promise but flopped badly like many others, from the initial investment of $3,000, went up to over $4,000, but now down more than 50% but still worth holding:
