Idiotic Fund Managers

On those days when the share prices plunged, it wasn't the small shareholders who determined the prices.  The main characters are the fund managers who oversold the stocks they manage.  These people have lost their investors lots of money... but they continued to get nice pay and commission.  The world is a fucked up place!

Gold stocks

Wall Street has tumbled... a lot this AM.  That means ASX will follow like a puppy.

Every time a major correction like this occur, I think it is a great opportunity to top up good stocks which are still making money.  China's role in world scene is becoming very important and apparently is the reason for the huge correction.  HUGE!

While I don't dip in again... yet, I am watching.

Contrarian

Great to be one but whether I am successful is a different story.

I put a low price for ANZ at 28.01 and WBC at 31.01 and I collected the small parcels of these bank shares.  At the time when I put in the bid, the share price was much higher so I wasn't expecting to gain any.  Nothing seems to be changing in Australia.  And really nothing major seems to be happening around the world that I don't know of.

The closing price was 1% higher so someone has sold off bank shares too low.  However, if Wall Street continues with another major sell off, then I am the laughing stock :-(

My question has been... How much lower can bank shares go when it is still making money?

ANZ

This is a very rare event.  This morning I topped up ANZ at 29.52, yesterday's closing price.  The SPP is over $30.95.  It is extremely uncommon for SPP price to be above any of the Big Four banks market price.

And today, with my untrained eyes, ANZ (NZ) has announced their trading performance for the last quarter.  It is not awful.  Perhaps it is the caution that the market doesn't like.  But if the money I put into its share earns more than 2% (either capital gains and/or dividend), I would be happy.

My question is what is happening with the ASX when banks are dumped?!