snippets - 30/10/09, page-5

Rebacka

Well done - your TA links nicely with my view of where the market should sit from a FA point of view. For someone learninbg about TA now, your post is clealry explained and very logical. I love the capital preservation focus of your investment style. It would be interesting to do some analysis over a 20 year period to see of this style beats the market in terms of returns. I would suggest it does as you may give a little on the upside but you protect a lot on the downside.

The market correction is positive long term as the market needs to consolidate a little as I feel safer to be in a market that is reasonably priced.

Does seem the Aussie market has taken a bigger hit than the US market so far in this correctiion which would suggest future DJIA falls will be followed by more measured falls by the ASX 200.

I will be comfortable when the banks are 30%-35% not 15% off their peaks, BHP is low 30s to reflect lower commodity prices and retailers reflect the reality of a more conservative consumer going forward.