Switzer on Saturday

How I ignore nut cases and invest…

Founder and Publisher of the Switzer Report
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The week that was proved two things to me and I recommend you note this in your mental investment diary. First, the stock market is driven by a group of short-term nut cases.  Second, always remember that you’re different - a long-term wealth builder - and if you’re not that, then apologies for my earlier insult.

I’m often asked about how I invest and what I invest in, so I will sum it up succinctly. I buy great companies that generally pay good to great dividends that are made to look even better, thanks to those lovely franking credits. I invest inside an SMSF to maximise those credits and I’m over 55 and on a transition to retirement pension to ensure the lowest, legal amount of tax. If you’re over 55 and not doing this, then you’re possibly as crazy as those short-term traders, who sold off when the Fed boss, Janet Yellen, made her rookie Chairman mistake alluding to an interest rate rise around mid-2015.

Right now, I’m fully invested in Aussie stocks, as the best time to be in foreign ones was when the Oz dollar was at 110 US cents. I think our stock market has more catch-up upside. That said, I have no problem with foreign exposure, though those talking it up now are a couple of years late. If I were going to invest overseas, I’d do it with a fund manager, who can pick the best companies.