Tuesday, 30 September 2008

Markets Fall After Bailout Rejected

Tomorrow I will have to report on my net worth and I am not looking forward to it. In the US, the bailout has been rejected and world markets have crashed. Here in Australia the All Ords has fallen about 3 per cent to 4500. Some people who are geared into the stock market, such as Enough Wealth, don't seem to be posting anything. They have become very quiet.

Last week I purchased 20 shares in Woodside Petroleum, hoping the bailout would be passed, economic growth would resume, and oil and gas prices would go up. I purchased each share at $57. Today each share is $52. When I purchased the shares, the price of oil was US$106 per barrel. Now it is US$96 per barrel. I'm not complaining because I rely on petrol a lot since I drive about 50 kilometers every weekday. I think it's important that I hedge myself against rises in petrol prices. If this downturn continues and oil prices remain low, I should be able to pick up cheap shares in oil companies to prepare myself for what might be an oil boom in the future.

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