Help me to Retire

Thursday night I attended the Fat Prophets seminar in Adelaide. The session was split into 2 with the first half going over Fat Prophets traits for successful investors, including:

• The boom bust cycle - understanding where we are in the cycle
• Minimise losses - stops when using leverage or technical analysis - ignore fluctuations long term
• Let your profits run… but don’t give in to greed - eg sell half after a large profit
• Don’t buy overvalued companies
• Diversification - always hold at least 5 stocks from different asset clasess
• Follow some rules - have them and be consistent

The second half was on where the markets are heading.
The next 5yrs we are in for increased volatillity, oil to never see the south side of $40 a barrel again (no suprise there) and heading over $100 a barrel. Interest rates will be rising as inflation is rising. The USA’s debt is out of control and can not be sustained for ever. Dow Jones to continue to underperform. Aussie dollar to be worth more than the US dollar in the next 5 years.
Gold - another 5 years of the bull market in gold to go, currently in a medium term correction. Not much in the ground, 3.5 thousand tonnes a year used, 2.5 thousand tonnes mined a year, 140 thousand tonnes mined ever!
Australia - Resources should keep our markets up and with lots of superannunation being put into the market also.

Curent Investment ideas ( do what you will with these)

• Japan market still recovering with much higher levels to come
• Japan property looking good for a rebound - Managed Fund - Platinum Japan Fund or BJT-ASX or Rubicon Japan Property Trust
• Gold - LHG-ASX - 30 year mine - not hedged - pretty much follows the gold price
• Telstra - TLS-ASX yep you heard it Telstra and they say to get some T3’s

So there you have it. A lot of this seminar was similar to last years, including some of the same stocks reccomended. I guess this just shows you that these guys are in it for the long term!