Our super was cashed out because of a third party non compliance in Nov last year. We went to 100% cash so we were very lucky in hindsight. Now we are looking to get back into the market at some stage. We are very nervous about the high volatility at the moment and have heard that the market has bottomed out but has it? The market has gone up three days in a row and we haven't bought anything, what do you think?
Wait and watch! The market will whipsaw like a crazy thing, so we will no doubt get another vicious leg down before too long. It's highly unlikely in my opinion that having cash waiting on the sidelines will be a bad thing for you. This crisis will take months to play out, maybe more than a year, so the weight of probability suggests that the market low is not yet in. That's what I'm betting on, anyway. And I feel your pain not having bought a week ago, but that's the game. It's okay to lose the set as long as you win the match.
Thank you so very much for your insight :)I'm glad I followed your warning and am still making a little on my Super since I pulled it out of shares and put it into term deposit prior to the crazy drop in interest rates :):)
So thanks again and I'll keep tuning in.
Of course, the ups and downs will continue as long as those speculators buy low then sell high. This situation happens every 10 years or so and wait for such a happening, then get stuck into the market until the rises start to consistently rise.
I was pleased to hear Vern allude to the fact that fiat money has enabled us all to live beyond our means. But I think there is another point to note, and that is the way the ABS measures CPI and GDP, combined with off-shoring of the major cost for most businesses, and that is wages.