Ups And Downs

It has certainly been a week of ups and downs.

Firstly the Reserve Bank put up interest rates by another 1/4 % which will affect the already depressed property market and not to mention those who borrowed to the hilt for investment properties when the boom was on.

So it snowballs then. To recuperate any rise in loan repayments ,the rents go up as well to compensate. You can only charge so much for rent till your tenant either quits the premises or jacks up paying altogether.

You still have to make those loan repayments whether you like it or not. The banks aren’t worried as they will get their money back whatever happens.

As you can gather personally I am not fussed on property at all. Two many things can go wrong. At least with shares, I can sell whenever I like, or if I need cash in a hurry I can get it fast mostly within 24 hours.

It is surprising how many people think that politicians are responsible for interest hikes.

When in fact it is the strength of the economy and persistent inflation that influences the rises in interest rates. The onlly time politicians are indirectly responsible is when they give you a tax cut as this can stimulate the market a bit. As we then spend the extra cash and they get some back in gst. Crafty buggers.

Some of my shares when up again today albeit it modest in some instances i.e. EGO went up by 14.29% which sounds wonderful till you take into account that in reality they moved from .006 to 007 .With these lower priced stocks a little movement can mean big profits. It also can mean big losses too.So be aware of this if you are playing the lower end of the market as I do.

QTK continued upwards again by 2.7% and BQT after its big rise yesterday went up 9% again, which means in reality up 1 cent plus they got a please explain from the ASX ( speeding ticket) as to why they went up so much yesterday.Funny they had no idea as to why it went up and I could not find any reason either. Though I still feel it is a bit of “insider trading” is involved. Time will tell.

VPE went up 9% as well. I expect big things from this stock in the future. MEO stayed level and AEX (my uranium stock) slid back 4.76% Again as this is a low priced specky (speculative)
So I am not particularly worried.

You have heard me talk of the herd mentality of investors and the funny (crazy) things they do. Well LEI, Leighton Holdings, a nice blue chip I would dearly love to have in my portfolio, just advised that their profit for the last quarter has risen by a massive 34%. and they expect more of the same next quarter.

The share price you would think would go up? Logically speaking?

It actually went down by 70 cents at one stage to finish 40 cents down on the day. Now if you can work that one out would you please tell me,because I would not have any idea at all, as to why that happened.

It just goes to show that the market is full of unusual mad, investors. Excepting me and you?
And we know what we are doing don’t we? ( Well most of the time)

In the meantime, Have a good weekend and we can look forward to more of the same madness next week.

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