Stock Market Crash 2011 Are Self Funding Instalment Warrants the Solution

Posted on 23. Sep, 2011 by Global in Uncategorized

With the entire world now in chaos where too from here?  After watching China now having issues it is no wonder Australia is now following the rest of the world.  We have been on a roller coaster for quite sometime and it is no wonder that the roller coaster continues as we now realise it is a double dip recession.  It is obvious that the reserve bank of Australia will hve no option but to cut rates which means property prices are now headed for a slump in my opinion for the coming years.  If you own property it may be best to sit tight and hold on to your job as this may take several years to recover.

Yes it is hard to follow what has been happening and definitely harder to know what to do.   On the very rare occassion I turn to the TV late at night to listen what has been going on.  All you here is doom and gloom.  One of the things that I heard a market advisor state today (hold on let me rephrase a fund manager) is don’t panic and sell out of your portfolio.  In other wordds the market is driven by people and people follow the herd and sell when the skies begin to fall – yep they made a movie called chicken little about eh skies falling.

My advice as a private investment advisor to wholesale clients (clients with greater than $500,000) is to hold there positions but protect their portfolio from the downside.  To achieve this protection an index option can be used and more readily a PUT option provided the equity is optionable.  Other products include self funding instalment warrants which help clients extract cash from their portfolio even if the portfolio has not performed.  The ebenfit of doing this is to utilise the cash for additional assets i.e. buy more stock or invest in property

For more information check out Self funding instalment warrants or to become a client Manly Private Wealth

chat soon

thanks Anthony

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