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3/13

Where to next?
No one knows for sure, we are likely to see market
volatility continue until financial institutions have
balanced their books as a result of the sub-prime
crisis. Some argue that the upfront accounting
is likely to have shown losses that may not
even exist and that now is the time to buy.
Personally I feel that whilst we are likely to
see another one or two financial institutions
announce big write downs due to the sub-prime
crisis, opportunities have already begun to present
themselves.

The problem for most investors is that the emotional attachment we have with our own investments means that we find it much easier to buy when markets have risen, and sell when markets have fallen. The reality is that we should sell when markets are high and buy when they have fallen.

Whilst we cannot predict exactly
when we are at the top or bottom of
a cycle, stockmarket corrections are
a natural part of market behaviour
and can provide some excellent
buying opportunities.

 
Big falls in the share market are often very closely followed by big rises. Staying invested in the market during these sharp rises is crucial to long term investment returns and is therefore the best way to achieve long term returns.
 
Investments in this issue
Cromwell (unlisted)
Property Fund
p11
FEA 2008 Forestry
Plantations
p8
FUNDS FOCUS Investment newsletter: Issue 2, June 2008

3/13

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This month, we have highlighted a number of investment opportunities for investors looking for returns in a falling market and cover some of the basics for end of year tax planning.

 

Cromwell (unlisted) Property Fund.

Favoured by many investors for their low volatility and tax deferred income, unlisted property funds have once again come to investor attention after they have continued to provide returns in a falling market.

p11

 

FEA Plantations Project 2008 (tax effective forestry)

There is an increasing gap between world supply and demand of timber coupled with the current tax incentives makes for a compelling investment

p8

 

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Probably the worst thing you can do is sit on an portfolio full of proverbial "dogs" in the hope that they'll somehow get their act together and produce you the great returns overnight. We're giving investors the opportunity to get a free report across all their managed fund investments.

p13

 
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