11 June 2008

ASX - Stock Market Investment Plan 2008

1. Focused on buying stocks that were either performing below the ASX 200, or well below their all time price high. Put $10,000 in each stock (diversification), so that we could maximise any increases/minimise risk.

3. We didn't focus on the price of the stock as we understood that it was the percentage rise of the stock that was important.

4. Buying stocks performing below the market but existing in strong sectors, in the hope that they would realign with the market - energy and retail sectors/core stocks (Note: high profile stocks - experienced good growth, but not extream high ranking, sometims need to take much greater risks)

5. Special Oppotunity in 2008: Invest in sectors/companies that have been oversold due to the global credit crisis and the weakness in the US economy. The sharemarket sell-off spelled opportunities to invest in companies which were trading at a much discounted price.

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