🚀 go-pugleaf

On Wed, 11 Mar 2009 22:07:01 +1100, Andy wrote:

> All the advice I heard in the media in the second half of last year from
> the financial 'experts', when people asked whether they should move their
> investments to the Cash option in their super, was to stay with the option
> they were in so as to not miss out on the "upswing" when it occurs.
> 
> Had I followed this advice my super today would be down 23% since July 1,
> 2008.
> I did move my investments to the Cash option on August 1 last year, and
> today I am 3% better off since then.
> 
> Even if I wait 6 months after the upswing occurs before moving my money
> back into my previous options I am going to be streets ahead of where I
> would have been had I not made the change.

If everybody got out of the stock-market then it would dive even further,
so these "advisers" always have a vested interest in protecting any value
in this area so people don't get totally disillusioned with it (and are
therefore more ready to jump back in when the recovery - finally - occurs).

A lot of people still have their super in the "Default" mix which contains
a lot of stocks, some of these people could have changed to Cash of Fixed
Interest investments and alleviated a lot of the losses but they didn't -
so they continue to lose.

The smart money - which got out before much, if any,  damage was done to
their investments  - is just waiting for any sort of solid recovery to
then move back in and later sell out to the masses (for a tidy profit)
once the "mums and dads" are told it is safe for them to start investing
in stocks again (there is one "born every day".....)

Nothing new really in the pattern of events, it is just so many more
"ordinary" people are now entangled in stocks (through their super) than
in previous recessions.

-- 
Regards, David.

David Clayton
Melbourne, Victoria, Australia.
Knowledge is a measure of how many answers you have, intelligence is a
measure of how many questions you have.