To be honest, I have no idea what the market is going to do. I...

To be honest, I have no idea what the market is going to do. I gave up on that a long while ago. I have actually never met anyone who is able to regularly predict with a degree of accuracy and consistency what is going to happen.

I basically approach it the other way - look for well run companies with a good management team, good assets and long term potential. Then if someone is offering to sell part at a low price, the only decision to make is whether to say yes or no.

I hope the Dow drops way, way down and takes the ASX with it because then some of the companies we have our eye on will be going for even lower prices than they are today. Even if we go into recession, it won't be forever.

With CER, the question really is what the trust will look like in, say, 3-4 years. They revalued all of the assets in Dec 07 but there will be a further drop last half for sure. At less than 60% LVR, will the current and future revals (between now and the end of the 'downturn') be enough to wipe-out the difference between 31.5c and $1.65 NTA? I doubt it. This has always been a long-term risky play though.

The fact that they actually made a distribution last half (albeit a small one), the level of insto interest and those huge XTs which whizz through regularly are positive signs IMO.