My investment strategy now has been to invest big into big pharma. I've put all of the proceeds of my CMR warchest into LSE:GSK and SIP after paying off my margin loan debts in full.
If you're into getting away with tax fraud, Roche is also a good bet (although at PER23, a bit too pricey for my liking), with bearer shares and no share register it's the sort of place I'd invest if I had a few extra zeros on my net worth.
No matter what happens to metals prices or the broader economy, people will always get sick (espesh with a global obesity epidemic, a generation who loves recreational drug use, ever increasing pollution and the big one: ageing population).
Why should I let my nice black hair go grey from CMR incompetence and commodity price twitches when heavyweight pharma companies like GSK are trading at sub-13 PERs?
My HSBC margin loan account here in London doesn't even have margin calls! If you fall outside the buffer, they write you a letter, and you pay them back when you can. Not like the dreaded 5pm call from Commsec ML mafia back in Melb (I've had two of them in my early days, not a pleasant experience)!
In any event, I think that ASX stocks have become overvalued over the past few years in comparison to their LSE counterparts, and with the USD at the whim of Chinese and Saudi central banks, GBP and EUR look like good currencies to hold.
My investment philosophy is to always be at least 100% invested (although atm. with nice low interest rates thanks to global liquidity provided by the dog-eaters, I'm about 150% invested in stocks), in sensibly priced assets that are actively generating value in some way (okay, I have a car-space, but that's it for non-share investments for me).
In a couple of years I'm sure that I'll be migrating my money back to the ASX, when things are cheaper there, but for now, it's mainly London stocks for me.
FYI, those of you who know LSE stocks, I'm also into NRK, SPD, DRX and MPI.
In any case, in the current situation, CMR is a lose-lose situation, if commodity prices stay high, we lose because we're not producing anything with any certainty anytime soon and if commodity prices collapse, we lose because the NPV valuations go through the floor.
Once the metallic stuff makes it to the customers' hands the situation might change.
But does ANYONE know when that will be??!
CMR Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
