Stocks rollercoaster

Since selling our house we have invested mainly in shares, managed funds and high-interest cash.

The shares have performed well for us, but you’d have to be a dud investor, a high-risk speculator or very unlucky to fail in the current market.

It’s fascinating to watch how different companies perform and how the market reacts to various influences such as commodity prices, the Dow and profit announcements.

I wanted some BHP Billiton shares when we started the portfolio in August but I felt they were fully priced at that stage and I didn’t want to be too heavily committed in metals. I bought some though when they dipped early this year to $24, so it was a good feeling to see BHP add six percent today and climb to $28.24.

Conversely, I bought Patties Foods in their IPO at $1.85, tracked them higher to $2.20 and saw them sold down yesterday to $1.78 after reporting negative sales.

Overall though we’re doing okay. With so much money floating around in superannuation funds I can’t see the Australian market cooling all that much in 2007.

It was interesting to read in BHP’s announcement today that the company isn’t all that worried any more about what happens with the United States economy. Basically they expect continued strong demand from emerging markets in Asia with solid contributions from Japan and Europe.

I wonder if the performance of the Dow and the American economy generally will become less relevant to the ASX?

A couple of our other stocks issued half-yearly reports today. Stockland Property Group (SGP) had good news and the price responded accordingly. Boral (BLD) came in with expected results and expressed confidence for the future.