Uranium

No one wants uranium stocks at the moment. Yet the price of uranium has hardly moved in recent months.  It must be sitting in its trough and seems unable to move down any lower!  Perhaps, it is time to look at topping up uranium stocks but what is the point of buying if it stays in the trough?

Negative treat

We are in for a negative treat on Monday with Wall Street tumbling by 1.6% last night.

Because the world economy is not that healthy (European malaise, Japanese spurt stuttering and China slow down) and only the US showing progress, the US interest was kept at zilch.  Most institutions are extremely worried about rising interest rate in America.  However, I think that is extremely foolish when investing for the longer term.

American interest rate rise would indicate that EVERYTHING is well so why worry about a tiny increase in the interest rate when the economy is doing well?

Bank shares

Depositing money into a bank will get you 2% but buying bank shares will get you more than 3%.  Even if the share price falls, the yield (based on purchase price) will still be better especially if you include dividend imputation.

When ANZ fell below the placement price, I purchased a lot of it.  But it continued to tumble.  Today, I bought the maximum allowed with the SPP which will be below what I recently purchased at about $29.50.

I also purchased WBC and CBA recently and also topped up another lot of CBA with its rights issue.  That is it, I will lay off bank shares unless there are special reason to buy.

Everyone would wish they bought OSH recently instead!  Today WPL made a bid for it...