Like some on this forum I like to dabble in a bit of share trading. I am not what you would call an expert in fact I am probably closer to a being a Deep Sea Racing Prawn than an expert share trader but I do try and with the run we have seen in the last year or so money could and has been made by even the most novice of investors. Personally I like to hold half of my meagre portfolio with a longer term view in high quality stocks that pay a decent yeilding dividend with even if its small some Capital growth potential while the rest is held with a medium to short term trading view. Recently I am finding it more and more difficult to find good quality profit making preferably dividend paying companies listed on the ASX that still have some capital growth in their share price in other words all the stocks that analyst call good quality companies to me appear to be overvalued? (CSL, all the banks, RIO, BHP, WES, WOW, COH etc...) So a couple of questions I'm open to hear any and all opinions you have; - Firstly do you think that a correction would be a healthy thing for the market at current levels? - If so how much of a correction do you expect from the current levels of around 5100 - 5200 before consolidation? - Is anybody who has been invested moving their portfolio to a cash position for short term? - What stocks are you watching/holding and why? - And finally where do you see good value at the current price levels? Personally the only sector that doesn't appear overvalued to me is the materials sector which I imagine would be quite popular among the Stackers community. In saying that I am currently avoiding it like Bali street food. You can get really lucky and find a gem that you will tell everybody about but taking a punt on most will just give you the shits. I'm not saying mining stocks are bad some are really good Sirius over the last 12 months is remarkable and cannot be ignored, Regis (RRL), Silver Lake (SLR) & Perseus (PRU) are magnificently run mining companies who are making good profits with good resource stocks that should produce for years to come. The reasons I am avoiding mining stocks (remember just my opinion and probably poorly informed) are; - Materials as a market sector have been trending down consistently - The price of gold is looking a little grimm in the short to medium term - There is a serious lack of support for even the best companies in this sector (don't like to name and shame but Newcrest springs to mind) - and there is very little to no upwards price momentum in majority of the stocks listed. The combination of these factors has me thinking the only way for prices to go are further south. Would be interested to hear what all you other stackers have to say on the subject and where you will be putting your hard earned
