Would reduce your holdings in Telstra if you had a good profit?
And what is your opinion on Challenger (CGF) – is it a buy at 7.50?
A: Thanks for the question.
You can never go wrong taking a profit. The question is - where will you invest the cash?
With Telstra, I don't think that you are going to see any real selling pressure until interest rates start to go up. Even up near $6.00, the yield is still relatively attractive.
I am not buying at these levels - and the next move for me is to lighten off a touch - however I am in no real hurry.
If you have a material position, perhaps you sell 20 to 25% at these levels.
Challenger (CGF) has had a great run. I am not a buyer at these levels.
