|Is $5.50 an important figure? I personally don’t think so. Valuations by the professionals vary enormously, so how would I know. What I do know though is the market eventually sorts out the price. That price should be academic to us as disciplined investors, as we will already have exited.
I have learnt from the “hard school of knocks” that once a weekly trend has been broken it is time to go. Never be a missionary for any investment. Over the last two decades we have seen the unbelievable happen and company icons disappear off the bourse – the unbelievable has happened and will happen again. I am not taking a view that it will with AMP but I am saying this is hard cold business and only one thing matters – protecting your capital at the absolute worst.
Over coming weeks I will be writing a lot more on this topic.