The Law of Average

Stock markets generally show improvement over time otherwise what is the point of investing in equities?!  However, after accounting for the average rise over time, you can expect that without any good announcement, any company where the share price has jumped purely on sentiment, then it will gravitate down to its basic rise, ie a correction will occur.

Yesterday was a fantastic day where price of our big gold miners and tech shares went ballistic resulting in outperform of our portfolio.  However, in the USA, the indices were down on their Friday.  And the SPI is expectantly down too.  Hence, I am looking at a lousy Monday as gold price retraced and NASDAQ has a greater fall proportionately than DJI or S&P500.

EDE

No one wants to hear about EDE.  Briefly, it was our most valuable stock on our super portfolio.  And then it almost went into oblivion.  Yet, I never sold.  In fact, I did minimal top ups.  I daren't top up because the share price kept falling!  I even avoided one SPP for TAS.

Its technology is incredible.  Take a molecule of methane and split it into its basic form, ie carbon and hydrogen.  The hydrogen is made into Hythane for combustion into... water.  No CO2 is produced.  The carbon is made into nanotubules and used to make stronger concrete than steel ones.

Took a long time for approval everywhere but it is getting there!

ASX

I am referring to the stock ASX and not the market...

My father was right.  If you don't know what to invest and can't do any research or can't keep track, buy stocks that give chronic reliable dividends as it means they are profitable businesses.

Many years ago, I wanted to invest in a city apartment but pulled out when the bank valued it at way below what we offered.  To get the down payment, I needed to sell ASX shares at $28 a share.  Because the deal fell through, I kept my ASX shares and they are now over $80, with about just over 2% franked dividend.

My father never told me this.  In addition to reliable dividend, you must get those with sanctioned monopoly or near monopoly.  The big four banks, ASX and SYD belong to this group of shares but the banks have been hit hard by the recent Hayne Royal Commission while SYD has been tampered by the building of the second Sydney airport.  All these 5 are recovering with the ASX still going strong!