Great post Nickoo. I switched $120,000 which was in an equity...

Great post Nickoo. I switched $120,000 which was in an equity fund to a bond fund two years ago and was I proved right.

Meanwhile my equity portfolio has roughly broken even despite a couple of horror stories.

So what to do now.

My accountant believes the answer is fully franked dividends. You build a portfolio which
pays solid well covered franked dividends with enough growth to offset inflation. One thing is for sure when I reach pension age thats what
my investments will look like supporting pensions so that I will get the government pension as well. (I paid high taxes throughout
my working life and think that I deserve something back). I am a dinki di heterosexual bachelor so got no free education for kids etc.

Meanwhile what to do. Well I am slowly taking
profits, building my bottom trawling list and
stock picking.

With property prices going totally stupid there is a temptation to sell my family home and buy a villa which would be more suited to
my needs and reinvest the surplus. If I dont do this then in goes solar hot water and a water tank to supply the garden and dunny.

As far as the gold price I am not sure. The Financial Review on saturday claimed gold is overpriced and that base metals look good. I am not so sure but suspect that silver is likely to be the big winner. As is well known demand greatly exceeds supply and once stocks are run down the price will move up.

All in all I think that the good times have stopped rolling. This year is going to be just as difficult to get right as last year.