Hey all,
Just wondering if the current market selloff is a good opportunity to buy quality shares at a discount.
History says it might be. But there's also alot of clouds on the horizon.
Thoughts?
Anyone Buying Shares in The Market Selloff?
Shane34 on 24/02/2022 - 16:58
Last edited 24/02/2022 - 16:59
Last edited 24/02/2022 - 16:59
Comments
Haha rekt
DefinitelyâŠwho knows how far it will go down though.
Or how quick it will bounce back.
Should bounce back today. US markets are up. Well done to those who bought yesterday.
Or how quick it will bounce back.
Or how shallow will go down …
Will keep an eye out for sure, I liquidated a lot of stuff in 2021 in anticipation but obviously jumped the gun. Will be a few days or more yet before the markets settle..if they do settle. There's a lot of other stuff in play besides Russia and Ukraine.
Hasn't dropped enough. Don't think there be another dramatic drop like covid.
Might be just 5 percent drop
No PP left for this move
Why involve your PP?
Anyone remember when it's a correction? I think it was 15 or 20% from the peak.
I'm interested in some blue chips or the asx index ETF for 3-5 years. Yes there's risk but getting stuff all interest in the bank is killing me. (Not going all in though, maybe just a third of my savings)
10% a correction , over 20% bear market
You can buy AUD/USD stable coins then put it into crypto.com or nexo etc and get 10-12% on it..
99.00% of people aren't ready for those sorts of yields.
I've taken money out of the mortgage and have split it across a few different CeFi providers - crypto.com, youhodler, hodlnaut, vaultd. Can get 12% from each of them for USDC (or TAUD for crypto.com).
Only risks I can see is a provider goes broke from a hack/scam/crash, hence why I'm spreading the money across them. The stablecoins could crash but they're both backed and independently audited so pretty safe.
@booboo: You might want to do a bit more reading on the "stablecoins are both backed and independently audited" angle.
e.g. https://www.cftc.gov/PressRoom/PressReleases/8450-21 (section below is quoted directly from that)
"The Tether order finds that since its launch in 2014, Tether has represented that the tether token is a stablecoin with its value pegged to fiat currency and 100% backed by corresponding fiat assets, including U.S. dollars and euros. However, the Tether order finds that from at least June 1, 2016 to February 25, 2019, Tether misrepresented to customers and the market that Tether maintained sufficient U.S. dollar reserves to back every USDT in circulation with the âequivalent amount of corresponding fiat currencyâ held by Tether and âsafely depositedâ in Tetherâs bank accounts. In fact Tether reserves were not âfully-backedâ the majority of the time. The order further finds that Tether failed to disclose that it included unsecured receivables and non-fiat assets in its reserves, and that Tether falsely represented that it would undergo routine, professional audits to demonstrate that it maintained â100% reserves at all timesâ even though Tether reserves were not audited.
As found in the order, Tether held sufficient fiat reserves in its accounts to back USDT tether tokens in circulation for only 27.6% of the days in a 26-month sample time period from 2016 through 2018. The order also finds that, instead of holding all USDT token reserves in U.S. dollars as represented, Tether relied upon unregulated entities and certain third-parties to hold funds comprising the reserves; comingled reserve funds with Bitfinexâs operational and customer funds; and held reserves in non-fiat financial products. The order further finds that Tether and Bitfinexâs combined assets included funds held by third-parties, including at least 29 arrangements that were not documented through any agreement or contract, and that Tether transferred Tether reserve funds to Bitfinex, including when Bitfinex needed help responding to a âliquidity crisis.â
In addition, the order finds that Tether failed to complete routine, professional audits during the relevant time period. According to the order, Tether retained an accounting firm to perform a review of Tether reserves on a date Tether selected in advance, and Bitfinex transferred over $382 million to Tetherâs bank account in advance of that review. The order recognizes that Tether has not completed an audit of the Tether reserves. "
@Crow K: Yeah totally agree - I wouldn't touch Tether with a barge pole. I'm talking USDC because it's backed by coin base and their backing funds are independently audited 1 for 1 (as far as I know) x
@booboo: What do people buy and sell in times of war when they're fleeing for their lives?
Tether's USDT Stablecoin Well Over $1 on Ukrainian Crypto Exchange
Tether, which is supposed to represent a $1 value as a dollar-linked stablecoin, is trading above its peg on the Ukrainian exchange amid tensions.
By Helene Braun Feb 25, 2022 at 4:22 a.m. Updated Feb 25, 2022 at 4:29 a.m.Ukrainians were paying a steep premium over the U.S. dollar for Tether's USDT stablecoin after Russia invaded the Eastern European country Thursday.
The price of USDT on the popular Ukrainian cryptocurrency exchange Kuna jumped Thursday by almost 5% in the past 24 hours to 32 Ukrainian hryvnia, the countryâs national currency. The price works out to $1.10 per USDT, which is supposed to be worth $1.
https://www.coindesk.com/markets/2022/02/24/tethers-usdt-staâŠUSDT is the oldest and most trusted stablecoin for a reason.
Catching falling daggers.
Next week it goes up? Probably dead cat bounce.
Or its the bottom.
we're roughly 8% down, last correction was 10%, but i feel this has further to go as people bail from growth stocks and back into safer value stocks.
my jump back in point will be after 15%
just look at the All ords/ASX trend. It's falling into a bear market. Last week was a dead cat bounce.
Let valuation and margin of safety be your guidance and you buy when those 2 aligns, bull or bear it doesn't matter.
Any tips for newbs to get accurate valuations? I signed up to morningstar and a few others but they often diverge on what price constitutes fair value and buy/sell prices.
Hence why I thought an ETF might be a better set and forget option.
ETFs you go with the market up and down without too much of a valuation issues as it can not go to zero
you can however applied a quick macro valuation on it likes it earnings multiple, compared it against risk free rate and its valuation against a country GDP
for example IVV is board S&P 500 ETFs that that covered most of the US economy so you can applied its comparison vs US GDP to roughly know when it approaching over valuation and you stayed put and don't buy until such time it dropped below the valuation levelValuation is a much more important metric for a specific shares, those who don't know much about stock valuation or unable to deciphers its cash flow, balance sheet etc.. better off stick with ETFs
there is no right or wrong way of how you investment your money, no one can predict the future, boom or crash, it all down to luck and gamble if you are into that prediction game
so stock up on your knowledge and go with what makes you sleep well at night.
If you serious on stock valuation and want to learn about it shoot me a message I can point you to some good resource, I wont advocates what shares you buy and sell because that up to each individual and their risk level but I can give you all the information you need to make that call
Cheers mate,
Thinking I'll go ETF for the bulk of my funds and just accumulate a few asx blue chips for fun.
I could be wrong but I think anything in the asx 20 bought now that pays dividends will probably still be a better investment in a few years time than just leaving cash in the bank would have been..
@Shane34: nice, my kids has no interest in the stock market so I advice them to go ETFs and auto DRP until such time they
want to be more active and learn, by the look of it probably never, they are too busy living their life and just automatic ETFs.If you go for ETFs go for the one with cheapest MER if you buying the same thing
say asx200 ETF or ASX300 ETFs go for the cheapest provide, no point paying more for the same product
Hi mate, am interested in learning some stock valuation method. Any chance you could share some knowledge on this topic? thanks in advance
Bought some AFG, MMS and BOQ today
It will likely fall further over the next month or so, but if youâre invested for the long term then itâs never a bad time to buy the blue chips.
rektrading told me to go all in on bitcoin and now I'm poor
bUy mOrE
It's always a good time to buy stocks, and it's always a bad time to buy stocks.
The difference is your strategy, risk appetite, and investment horizon.
History shows that given enough time, buying the market will deliver superior investment returns to practically any other "mainstream" asset class.
Is the market at the bottom? Nobody knows.
Will the market fall 10%, 20%, 30% from here within the next 12 months? Possibly.
Will the overall market be at a higher value in 10, 20, 30 years time? Almost certainly, and almost certainly provide a higher ROI over that time than most other asset classes.
That's what I've learnt from alot of wise investors too.
My timeline is at least 3 years and as I said above, I think in 3 years odds are blue chips and the asx index bought now will probably still have performed better than cash in the bank would have.
In the past I've generally just had it in the bank and while not losing I've missed out on a fortune in asx gains over the last ten years.
I think in 3 years odds are blue chips and the asx index bought now will probably still have performed better than cash in the bank would have.
I agree that you are probably correct … although you can find periods in history where that has not been the case.
This is a long way of saying "time in the market is better than timing the market".
Pretty much.
Sharemarket too annoying after being spoilt with 24 hour crypto trading. Bloody market's always closed.
Crypto, the only market where you can lose money while you sleep.
I started DCA'ing into ETFs in July and I'm currently down about 2.5k, I'm hoping this dip will start going back up soon.
Unless you need to sell soon, you want it to keep dipping to buy more units.
Definitely don't need to sell soon but going down 8% this soon after starting investing is not good for my heart haha
that where you need to form some view on valuation, buying at any price isn't a good move doesn't matter what it is
properties, shares, ETFs, business, commercial propertiesnot suggesting you time the market or sit in cash for ever but when you see valuation is stretch you step back and do nothing
I bought properties 5 years ago but I did not buy in the last 2 years, valuation is just too crazy, there will be time I will buy again.
I haven't bought any shares for the last 6 months, I still haven't bought more yet
I still hold a lot of shares I just don't buy any more for now until such time I see reasonable valuation againHere's a tip. If you're in it for the long haul, and the red is causing u some anxieties… Just don't look at the numbers and results.
Keep up the dca, automate as much as u can so u don't need to look at how the market is.
@SmiTTy: I been getting a lot of tips in the market for the last 25-30 years from a lot of people, one more person doesn't hurt :-)
I am always fully invest I just don't add more when the market is hot
Is okay. Every now and then you think you invested in the wrong thing. But ETF is a basket with some diversification. You'll be alright.
Can't say same for crypto. You just HODL on way down and never sell
Its got a long way to go yet.. like a yo-yo …
Sell oil and gas futures and thank me in 1 weeks time .
US crude is at $97 for reference .I went naked put on Woodside in Jan with the view oil wont drop below $75
I think Oil can run to $120 - $130 from here
Nope. Pulled out last week. This is no where near the end. I'll revisit it in a week or two.
Oh FFS! If you panic every time there is a world scare you need to rethink your investment strategies. Wars donât crash markets they only dent them temporarily. If you want to day trade and are here looking for advice you may as well get your advice from Dr Seuss. Good companies are always going to be good companies. They donât suddenly start to lose money just because the market has a panic attack.
Just chip away and buy a little each day. By the time things have normalized, you would have already missed a lot of the bargains. The markets are not going to wait for you and I to get in at the bottom.
Bought NIO & XPENG this morning at a longer term discount
I'm wondering if we might have hit the bottom. The US levelled out overnight. No doubt a choppy ride ahead though.
Buy now and find out in a week.
The share market has been fuelled to crazy heights in the past few years by the crazy never ending printing of cash, making the purchase of "real" assets the only way to go,as cash has become worthless. History says this has to stop and its going to be like musical chairs……everyone trying to sell at once. Crazy high valuations of shares still have no relationship to long term averages and that measure has stood the test of time over and over. Rich people don't buy overpriced assets…that's how they became and stay rich…..as the song says "fools rush in, but wise men never do"….The market will crash big time one day….it has to..
đ” has always been â»ïž.
People with lots đ” convert it to hard assets while the feds debase đ” to keep the rest working until they fall over.
Do dollar cost averaging like your super fund. Boring AF but works
DCA pre-tax cash into the super fund is good for avoiding taxes.
DCA post-tax isn't a good investment strategy.
Y?
Super funds are 40Y time locks.
@spurf: It's because I don't t want some âïž neck to đ the capital for 40Y for his benefit in return for a measly 7% APR.
I like to be in control of my finances. People underestimate how rewarding it is to be able to trade/invest in what they want when they want.
@rektrading: Well you can set up an SMSF if you want complete control over your super.
You still haven't put a strong argument against DCA as you can certainly control what you invest in, you just don't bother trying to time the market. Your strategy might be enjoyable for you as long as you accept that the chances you will beat the market is low and becomes lower as your investment horizon extends. The most likely scenario is that you will be well behind the "dumb" investor plowing into boring ETFs using DCA over the long run.
@spurf: I never said DCA was bad.
What I said was.
DCA pre-tax cash into the super fund is good for avoiding taxes.
DCA post-tax isn't a good investment strategy.
@spurf: The crypto bro are world best market timer, they always managed to exit at the top and bought back at the bottom every single time
just look at their post, when it start to fall, I sold out already, when it start to recover oh I got back in at the bottomcha-ching cha-ching easy as :-)
Bought the bottom and +25% in 18hr.
Buy shares now as war crises happens in Ukrainian . History repeats itself without fail, to wit: share price will rise again strongly after the end of the war. If you feel worries , and you are not exception, I suggest you acquire ( hold for at least 3 years) brick and mortar shares such as SCP, Bunnings Trust etc.( they yield good dividends too).
I ended up buying a couple of thousand worth of Wesfarmers shares. Seems a decent choice to hold long term.
I'm slowly DCA-ing in.
Crypto
Jolly joker
Wise man once said, picking bottoms gets you brown fingers
Not Crypto bro man, they can do it every time they can pick bottom and exit at the top
Sniped TSLA between $700 to $800 and LUNA $50 to $60 while the tanks rolled in. Will go in harder if goes back to those levels.
As above I have been trying to advise those share equity investors who are more careful with their savings to buy those brick and mortars public listed companies. These companies own properties and let out to their Mother head companies who run the business . I was a past public accountant and apart from owning my own portfolio I also help my daughtersâs. All are getting prosperous and the capital growth is excel. Average we attain a 10% return ( net after tax , not bad eh! ïŒă shares such as ASX SCP, BWP,give good rates of dividend and some slow but steady capital growth. We acquired less than $2.00 per share some years ago, and they are still growing strong. Burnings are controlling the hardware industry whereas Woolworths is in control of groceries industry. They will be here for many years to come.
So you believe that the property trust that Bunnings pays rent to is a better investment that Wesfarmers itself?
Wesfarmers is a very matured share but quite expensive for many.Whereas Bunnings property Trust share price is still reachable and has more rooms to grow. Itâs yield of annual dividend is more handsome in percentage wise especially good for those who need to supplement their daily living such as those aged pensioners.Just to quote a hypothetical case if something wrong with Wesfarmers ( please note this is only an assume case) the brick and mortar investment still remains intact ( I.e. why I said good for those cautious investors such as age pensioners).
Would any of the Social medias be a good stock to look at? I know facebook has dropped about half now..
TANG, people. TANG.
Microsoft currently selling at a PE of 29. McDonalds: 22, Facebook, 13, Google 22. These are not excessive PE's for 'blue chip' businesses that will be around for a long time to come. Sticking my savings in cash earning 0.1% doesn't seem attractive in comparison. I'm 'buying the dip'.
Which platform is everyone using? I'm with CommSec as it's seamless with my bank accounts. But the $19.95 fee isn't cool if I want to make regular purchases.
Keep buying the dip of the dipper dip of the dip
Dips are for buying and rips are for selling.
People that do the opposite can have fun staying poor.
Iâm buying various stonks, in lots of $5000
Well, a few months down the track after buying the dip and itâs going well so far, albeit the ups and downs of the market, particularly the mining and travel stonks.
Let news sink in. Let the market bleed and đ„Ź đ đ±. BTFD when they'll sell at the bottom.