Forum Archive Index - June 2002

["tennyson@caverock.net.nz" <tennyson@caverock.net.nz>]

>
> 
>Thank you Lippy et al
> 
>I sold all but one - a Gold stock.
> 
>Europe is chaos overnight. 
> 
>I am all but cashed up now waiting for the dust to settle.  
>
>

'Chaos' in Europe equates to a 7.36% gain since on my conservatively 
structured income portfolio in the 'Stock Guru Competition', here in 
NZ.  Sure it's been a rough week, but taking a medium term view makes 
the overall effect seem far from bad.   And 7.36%, even if I make no 
more gains for the rest of the year,  would compare quite favourably 
with what you can get at the bank Nick, I would think.

>
>
>I even changed my superannuation savings portfolio 
>from international shares to nz fixed interest.
>
>


I hope you realize what you have done Nick.  It is all very well 
turning in your trading shares and sitting on cash.  

But putting your superannuation portfolio into 'nz fixed interest' is 
in no way an equivalent thing to do.  An NZ fixed interest fund means 
you are invested in 'bonds'.  Bonds are not a capital stable product. 
Bonds will suffer a capital loss if the reserve Bank Governor 
raises interest rates this week.   I am sorry that this warning has 
come too late for you.  If it is any consolation I have made exactly 
the same mistake myself in the past.  Bonds are something to invest 
in when interest rates are falling, not when they are rising!

SNOOPY



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