Club Mulgoa

Friday, January 04, 2019

Volatility means something is amiss

Yesterday, while the market was falling, I was buying a lot of top-ups, with preference for companies that pay a dividend.

ZIP at $1.065, WTC at $16.47, TNE at $5.99, AD8 at $3.58, HUB at over $11.15, JIN at $7.05 and XRO at $40.90.  On the days before HUB at $11.75, JIN at $6.75, ALK at $0.19 and NWL at $7.50.

Have I gone crazy?  In theory none of these stocks should be ruffled badly by the clown at the White House, other than due to sentiment.  However, what is worrying is the unprecedented degree of volatility.  That is something I don't understand, ie, the aetiology and implication with the wild massive swings from day to day.  Perhaps it has due to automated trading on an industrial scale.

I buy for long term investment, with income having some priority now rather than risky/speculative stocks.  Rephrase that, growth with INCOME.  At some point, perhaps 5 years from now, I expect WTC to start paying out of the profit from its logistic software.

ALK was bought for its ignored gold income.  Big gold miners have been rallying up but this small one had been dumped.  However, it does not have a long life gold mine.  Its income from gold is used towards its future rare earth mining in the same area in NSW.

Wish me luck!  I have recently dumped my lithium miners (GXY and NMT).  Lithium price is falling as more mines are producing it.  That created some fund for the splurge in the last few days.

1 Comments:

Blogger Club Mulgoa said...

If you look at the share prices today, I have mostly made very nice profits out of those lemmings who dumped their shares on 4/1/19 when the market tumbled for no good reasons.

Do I feel smart? I only don't feel like a lemming. That question can only be answered years from today... when I retire.

11:35 PM  

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