Investment advice

to all the investment gurus…
i have BHP Rio and Fortesque all showing really good profit on what i bought them at ( $88 rio ,$36 Bhp and $16 fortesque)……should I sell?

On the increase in Wages, as measured by the ABS in the Wage Price Index…

My understanding is that this will only measure wage increases for workers in the same job. So people who move jobs for more pay, or are promoted internally for more pay but change their job classification in the process, are not included.

So it is a very laggy indicator, as stated by @theDJR. Eventually it will flow through (as employers bump the pay of existing workers, to maintain some parity with new hires and to minimise loosing workers themselves, but it needs to cycle through which may take 12 months or more IMO.

My business has multi-year contracts with pricing where rates may only be increased in accordance with the WPI. This leaves us in a squeeze between a limit on what we can charge clients, and what we need to pay to attract staff, as we have greater limits on our pricing elasticity.

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Do you need the money now? Do you have a better place to invest the money (i.e. somewhere that promises a better long term gain than Rio, BHP and FMG)? If you are talking investment, not trading, then those are the questions to ask yourself.

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One of the main drivers for the recent share price increase is the relaxing of covid restrictions in China. The sense that they might soon start producing more and needing iron ore etc is affecting the market. IMO that’s got a fair way to run yet so I’m holding onto my miners.

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My general rule with blue chip stocks is that I try to buy them when at a price that is reasonable and hold for the long term, even if in the short term they get some decent gains, otherwise it essentially defeats the purpose of buying blue chip stocks unless you have the specific goal to only hold them for a short while. If you need the cash you need the cash, but I have continued to hold blue chips for the long term despite short term gains and it’s held me in good stead.

The main one I think of at the moment for me is AGL (lol boomer stock). Had about 10k in them for as long as I can remember and despite their current malaise still am doing pretty well with them. I loaded up again at about $6.25 and they’re now just a smidge over $8.00. Haven’t sold any of them. Time will tell whether that was the right decision, but I’m trying to look 10 years into the future with these.

I don’t hold any of the companies you’ve listed so there may be some peculiarities about them that may make them attractive to sell at the moment, however. The above is just my general rule that ive set for myself.

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I follow BHP a bit and I’m bullish that they will easily run up to $55. I don’t follow Fortescue.

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thanks for the advice guys i will take your comments on board …and i have AGL too ( what a circus ! )

yeh as others have said if need the cash then go ahead. If want to hold long term then keep.

CGT wise if held for 12 months get 50% discount on capital gain.

where else would you put your cash?
what tax rate will you pay CGT at?
Do you expect FMG/BHP/RIO to run more.

I only hold FMG out of those, and topped up when they got to $15 recently, not looking at selling though personally.

Long term i would like to hold probably all stocks but BHP and Rio were pretty well covered in my ETFs as they have a big % of the market.
I almost got some BHP when they were $38 recently but just missed out.

I did think about getting some oz mineral shares as a way to get some BHP shares later.

Absolute shitshow, but mike cannon Brookes is an #agentofchange. AGL is too structurally significant to fade away into the annals of Australian corporate history. Im hoping a push towards green energy should create some opportunities for them. Don’t reckon it’ll ever get back to nearly $30 and the dividends will dwindle a bit over time as it reinvents itself, but itll find a happy middle ground is my hope.

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fortunately i only paid $8.25 for them and only have 800 thinking they were probably at the bottom.Like you i think longer term they should get back to the mid teens

Got any Crypto?
Well, good luck when things go south.
There is one certainty from the bankruptcy proceedings to come. ftx will go down as it lived: in breathtaking chaos.

  • A big restructuring might have 100 creditors. A long one lasts a year. A complex one takes at least a couple. In a hearing on January 11th, it emerged that ftx may have as many as 9m creditors—making it, by this measure, the ugliest corporate carcass ever seen.

  • The firm’s breakdown has left 134 insolvent entities in 27 jurisdictions. They range from ftx Zuma, a Nigerian exchange, to Good Luck Games, a game developer. The proceedings could take a decade…

  • The bankruptcy court’s first task is to find those owed money. Creditors are usually keen to come forward. Not in bankruptcies dealing with crypto.

  • Crypto has been around for 15 years, but nobody can agree on what it is. Token swaps are recorded on virtual ledgers by software on a blockchain, which no single person controls. This does not fit with property law, which assumes people own things because the law says they do or they physically have them in hand. Stocks have certificates of ownership; chairs are sat on by their owners. In contrast, the law does not enforce crypto ledgers and recording something on a blockchain does not conjure a physical coin.

  • When an exchange trading stocks goes under, customers are protected by the Uniform Commercial Code, a law that governs commercial transactions in America. ftx’s terms of use explicitly disregard this law. On January 4th the judge in another crypto bankruptcy ruled that some of the customers lack ownership rights over their deposits

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Lithium running again, topped up some PLS @$4 wish i got more now has hit $5

Related companies doing quite well too. I bought Novonix (developer and supplier of materials, equipment and services for the global lithium - ion battery industry) the other day for $1.70, they’ve hit $1.90 today

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I had NVX in the past from 90 cents to $12 then back down again, cashed out at $7.50 to free ride
then cashed more out at 8.50
then sold remaining parcel at $5 on the way down
under $2 is reasonable buy in, but are they making any $$ yet?
I hold more TLG & RNU now in Graphite.

They are projected to break even in about a year but after that there’s enormous upside. I’ll stick with this investment long term I reckon.

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Valued presently with a market cap of 900m

How big do you think this company could go?

Hard to know, they do have a lot of plans to expand. I’d be happy if they got to five times that but could be much more. The risk for companies like this is that another technology comes along e.g. Graphene Aluminium Ion batteries.