I know – the investors law is you buy at low and sell at a high. So why wouldn’t you be buying now with the markets on the ropes and even banks approaching bargain basement prices?

Indeed all the evidence suggests the brutal sell off of the last few days has some tasty bargains.  As the Financial Review reported: “At times the panic was so great, and the selling so indiscriminate, that investors finally appeared to be selling the stocks they love the most.”

And the yo-yo trading continued on Wednesday with more losses.  You don’t have to feel sorry for them, but Australia’s richest woman Gina Rinehart lost $2.4 billion (OK she still has $34 billion according to the Rich List).

And Andrew Forrest’s Fortescue Metals Group’s shares lost him $2 billion. He’s now only worth around $28.4 billion.

And after that ABC interview with Reserve Bank Government Philip Lowe, in which he confessed he got things wrong and an inflation rate of seven per cent was now likely, who can blame them?
And with interest rates heading north, Australian shares aren’t that much of a bargain.
Despite the rout, shares are only 13 per cent down off highs – so plenty of room to fall.
And then there is the problem of profitable companies.  Now the government has raised low wages and with prices putting retailers businesses in turmoil, where do you go for clear profit?

The Financial Review quotes “seasoned markets watcher” Arian Neiron, the Asia-Pacific boss of VanEck, as telling his clients: “Investors should stick to the decisions that they have already made … when they were in a calm and rational state. Now is not a good time to change the asset mix in your portfolio when you become overwhelmed by emotion.”

And so say all of us.

Our time to pick the bottom will come.  But it’s not quite now…

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