Black Monday

[couta1]

F=MA. As long as force is applied to said mass it will continue to accelerate.

[Biscuit]

This probably an oblique reference to "What goes up must come down" which is often, wrongly, attributed to Isaac Newton.

In actual fact "What goes up must come down" is Isaac Newton's Wife's Law of the Toilet Seat.

Best Wishes
Paper Tiger

He never married which might explain why he had time to sit around under apple trees contemplating gravity

[fungus pudding]

He never married which might explain why he had time to sit around under apple trees contemplating gravity

A further demonstration of his outstanding intellect.

[skid]

Newton made up many "laws". His first law was thata moving object tends to carry on at the same speed and direction until a force is applied to it - ie the law of inertia. Applied to the share market I guess that would mean that currently you should be all in?

I think that would only work in a vacuum(as gravity-air-wind,etc are all forces,working against the object)--so if one thinks the share market operates in a vacuum,no problems.

PS-Wouldnt that be great..one push on the scooter or peddle on the bike and off you go ,all the way to your destination!

[BIRMANBOY]

This thread was started in August 2015..so that would have made a similar decision wrong at that point. Question is of course what will next 8 months (or one month) hold. The classic conundrum about investing in the share market..is what you miss out on by being out of the market better or worse than being in.... And the answer is.....obvious in hindsight but not so obvious in a reverse format. Amazing that so many investors fancy their chances in being able to outguess the market.

The article confirmed what I believed was happening (although I didn't think foreign ownership was that high) and adds further support to why I liquidated approximately 50% of my share portfolio over the past 3 weeks. I've missed out on some gains for sure but ultimately I favour preservation of capital vs. hanging on for a few extra gains and I want a pile of cash on standby should I need it.

Another factor that influenced me to adopt this position was hearing people at work talking about investing in the market for the first time to beat the low interest rates. If I hear anyone mention "Share Club" - then I'm all out (I remember the 80's well). Also, Kiwi Saver funds continue to receive large cash injections each week, which are no doubt fuelling the current bull run and contributing to some over-pricing. Sooner or later - Newtons Law will prevail and personally - I want to be in a strong cash position to maximise any investment opportunities when and if there are some material corrections to certain stocks.

Maybe I'm right - maybe I'm wrong - but that's how I intend to play my game for now.

[dobby41]

I ahve cut the problem in half by liquidating half my portfolio.
Though I only participate in half of any gains I only get half of any losses also.
Using the other half elsewhere seemed to be a prudent move.

[Mickey]

This thread was started in August 2015..so that would have made a similar decision wrong at that point. Question is of course what will next 8 months (or one month) hold. The classic conundrum about investing in the share market..is what you miss out on by being out of the market better or worse than being in.... And the answer is.....obvious in hindsight but not so obvious in a reverse format. Amazing that so many investors fancy their chances in being able to outguess the market.

I agree with what you say BB.

Time will tell. As I said "Maybe I'm right - maybe I'm wrong - but that's how I intend to play my game for now". The good thing about playing my own game is that I can change my self imposed rules any time I want, I don't need anyone else's approval and only I am fully accountable for the consequences of my actions.

Fun times

[macduffy]

I ahve cut the problem in half by liquidating half my portfolio.
Though I only participate in half of any gains I only get half of any losses also.
Using the other half elsewhere seemed to be a prudent move.

That depends on the "elsewhere's" performance!

[Snow Leopard]

He never married which might explain why he had time to sit around under apple trees contemplating gravity

But his father, Isaac, did.

Whenever young Isaac went to visit his mother she would say, when he came back from the privy at the end of garden.
"Did you remember to put the seat down young man? As I used to say to your late father, 'What Goes Up Must Come Down'".
And it is, in part, this remembrance which later inspired him.

Best Wishes
Paper Tiger

PS: The whole gravity and toilets thing could be taken further but best we do not pursue this line of thought, even if Isaac did.

[Joshuatree]

His mother also told him his most important lesson which he never forgot."If it comes back its yours; if it doesn't;it never was" Esp appropriate and poignant when sitting under an apple tree in blossom.