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Saturday 15 August 2015

Falling knives everywhere, and Donald Trump on the TV running for president, where do you hide?



Just watching a bit of Donald Trump on the campaign trail, god help us, at least he makes our current crop of Aussie political leaders look good.
Even Helicopter enthusiast Bronwyn, looks incredibly frugal, compared to Mr Trump.

But with all that's going on and probably in spite of it, its probably a great time to buy shares, but probably go quietly on miners, commodities or banks if you already have a few.

Might be worth looking at some stock reallocation, big banks and miners are doing it tough, hard to see growth here for a couple of years, even with the building of the new silk road.

So we may have to be a bit more proactive than we have needed to be for a few years with our portfolio management.

The reporting season has been brutal, with little sympathy given to anything that looks like a downgrade or even forward guidance that is anything less than spectacular is smashed.

Look at REA during the week, great result, but share price went down 4%, and then up 6% on the day after, same share same result, but a 9% gain to be had if you were quick enough.

Other shares that had a belting, were CAR carsales, CPU Computershare, FXL flexygroup, even CSL, has had a hard time of it.

So these pullbacks might be an excellent time to deploy some funds, as most of the group, are great companies that should have more growth than the banks and miners in the next couple of years.

There are always good reasons why share prices fall, but I cant help feeling some babies are getting thrown out here in the bathwater!

Who knows whats going on in China, if they can devalue their currency without any warning, I guess people are going to get nervous.
But look at the Aussie its devalued against the $US by nearly 30% in a fairly short period, so maybe its a good thing.

 As always, DYOR,  I'm great at finding falling knives, and stupid enough to try and catch them!
So will put on some orders, see how we go.


















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