Listen to this Australian Share Market Report via audio podcast just click Upfront Investor

What are the best shares to buy right now? This question I hear time and time again, usually from people with a hit and miss approach to investing, however, they are probably the very same people I shouldn’t answer. Let me explain….

I find that many people looking to buy shares just want to be told what to buy and sell, however it is not that simple. This situation was highlighted to me this week when one of my team received a call from a prospective student who had previously lost over two hundred thousand dollars and now they were asking for advice after losing a further one hundred thousand dollars. What would you say to them?

Firstly, I can’t comprehend losing that amount of money because if you know what you are doing then losing that amount of money is inconceivable. Further, if I told them what to do would they follow my advice? Evidence suggests not. Also remember that what is said must be taken in context. Are they looking to invest for the short, medium or long term? Are they looking for income or growth?

The sad fact of the matter is that for the majority of investors and would be traders, all they know is that they want to make money but have very little idea how to do it.  Worse still this is only one example of many similar stories that I have heard in both bull and bear markets, and why my advice to you is that your best investment is in educating yourself as ignorance can be expensive.

What do we expect in the market?

Although the Australian share market took off at the start of the week the rise wasn’t enough to convince investors that the risk in the equities market has decreased to a level that justifies a significant increase in exposure to stocks just yet. This is evidenced by the fact that the index is still treading water below 4400 points.However, Australian investors have a lot to look forward to if the past few weeks are anything to go by. If the market continues to unfold in a predictable fashion I believe the next six to eight weeks will shape the equities landscape for the rest of 2012, with some nice opportunities setting up in a number of sectors including energy and resources.

That said we may see a road block in the short term until European leaders find a solution for Greece. But I have always said that a wise investor doesn’t follow news but instead has a plan for their portfolio.

Visit our Facebook page for links to more detailed discussions on world markets.

Dale Gillham

Chief Analyst, Wealth Within

Dale Gillham, ‘one of the country’s most respected analysts’ (Wealth Creator Magazine, Nov/Dec 2004), sought after key note speaker and author of the best selling book ‘How to Beat the Managed Funds by 20%’, has assisted thousands of traders and investors to learn to trade shares and become confident and profitable in their direct share investments. Tired of an industry saturated by quick fix gimmicks and expensive short-courses, Dale co-founded Wealth Within to provide ‘ real education and ongoing personalised support’, as well as independent investment advice to traders and investors who have become disillusioned by the market for one reason or another. As testament to this, Wealth Within launched Australia’s first and only nationally accredited Diploma and Advanced Diploma of Share Trading and Investment.For more information please visit www.wealthwithin.com.au

The Australian dollar is again moving up strongly against the US dollar with no sign that it will stop. Before I give you my thoughts on where it is heading, firstly I believe we need to look at whether a rising dollar is a good or bad thing for us? In times past Australia relied heavily on manufacturing but a high Australian dollar has a negative effect on exports. Given this many believe that keeping our dollar around $0.70 US is best for Australia, but times have changed and we are no longer a strong manufacturing nation. That said we are an exporter of raw materials and so the same argument can be made for a low dollar.

On the flip side there are positives for a strong currency and getting bargains at the shops is only one of them. We are also seeing entrepreneurs taking advantage of the situation and setting up new businesses and employing scores of people.Whether we like it or not the Australian dollar will rise further, and in my blog I recorded my estimate along with my views for world markets being that we will see it move up over $1.15 US in the not too distant future and probably to around $1.20 over the coming year.

As investors we need to focus on investing in businesses that will thrive from a rising dollar, and as a country we again need to adjust to the changing times just like we have been with the slow disappearance of our manufacturing industry.  

What do we expect in the market?

In contrast to the volatility of 2011, the market has continued to move cautiously upward which is a welcome sign to many investors. In 2011 investors of all shapes and sizes became sick and tired of a market that was more volatile than a war zone, and as such have stayed away. But before we get too excited about the continued move up over the past month, we need to remember this has occurred before in the preceding twelve months and as such need to keep a rational mind. 

Whilst I still believe we will generally trade higher in the next month or so and move up to around 4500 points and beyond, we are not out of the woods totally.  Do not be surprised if the market has one or two weeks down in the next few weeks before rising to my target. As I mentioned last week I expect that the next high on our market should occur sometime between very late February and mid-March.

Visit our Facebook page for links to more detailed discussions on world markets.

Dale Gillham

Chief Analyst, Wealth Within

Dale Gillham, ‘one of the country’s most respected analysts’ (Wealth Creator Magazine, Nov/Dec 2004), sought after key note speaker and author of the best selling book ‘How to Beat the Managed Funds by 20%’, has assisted thousands of traders and investors to learn to trade shares and become confident and profitable in their direct share investments. Tired of an industry saturated by quick fix gimmicks and expensive short-courses, Dale co-founded Wealth Within to provide ‘ real education and ongoing personalised support’, as well as independent investment advice to traders and investors who have become disillusioned by the market for one reason or another. As testament to this, Wealth Within launched Australia’s first and only nationally accredited Diploma and Advanced Diploma of Share Trading and Investment.For more information please visit www.wealthwithin.com.au

Listen to this Australian Share Market Report via audio podcast just click Upfront Investor

At this time of year we get bombarded with information in both property and shares from experts about where the best investments can be found for the year. As an expert I too have recorded my thoughts for the year on my blog, and whilst this sort of information can be helpful to investors and traders, at times it can also be detrimental. Let me explain..  

Often I am astounded in how people wrongly interpret information given by experts in their field. These experts can write thousands of words or record hours on how good a market will be, and in one small piece mention that a certain part of a market may be weak. However all the investor or trader seems to hear is the ‘market is bearish’ and so does not invest. We also get the flipside when discussing the many negatives of a share, offering only one positive, and again the investor only wants to hear that they should buy the share when this was not the intention of the comments.

Our beliefs and emotions can and do cloud our judgement, and in turn they filter what we hear and see into our expectation of what we want to hear or see. Experts can be wrong and experts can be biased; so it is always wise to do your own research and know for yourself why you are making your investment decision. Lastly always look at what the expert is really saying and not what you think they are saying as you could be wrong.                

What do we expect in the market?

The market has continued to move cautiously upward over the past week, which is an excellent sign for what is in store for the coming month. Now the holidays are over we should see volumes in our market rise and with it the Australian All Ordinaries Index should rise to highs not seen since mid-last year. 

As mentioned last week my analysis still points to a rise over the next two to four weeks to around 4500 points and possibly higher to around 4600 points. If I am correct, the next high on our market should occur sometime between very late February and mid-March. Sectors that I see that may provide opportunities this year are Materials and Energy with my dark horse being Health. All of these sectors have been hit hard over the past six to twelve months and each sector has great icon stocks within it which should do well over the longer term.

Visit our Facebook page for links to more detailed discussions on world markets.

Dale Gillham

Chief Analyst, Wealth Within

Dale Gillham, ‘one of the country’s most respected analysts’ (Wealth Creator Magazine, Nov/Dec 2004), sought after key note speaker and author of the best selling book ‘How to Beat the Managed Funds by 20%’, has assisted thousands of traders and investors to learn to trade shares and become confident and profitable in their direct share investments. Tired of an industry saturated by quick fix gimmicks and expensive short-courses, Dale co-founded Wealth Within to provide ‘ real education and ongoing personalised support’, as well as independent investment advice to traders and investors who have become disillusioned by the market for one reason or another. As testament to this, Wealth Within launched Australia’s first and only nationally accredited Diploma and Advanced Diploma of Share Trading and Investment.For more information please visit www.wealthwithin.com.au

This week Dale Gillham and Janine Cox discussed a number of important topics live online including the volatility observed on Australian and international markets (particularly in Asia) and what’s in store for the year ahead, as well as a forecast for the Aussie dollar which has been inching higher over recent weeks. In this presentation you will also gain an insight into some of the techniques used in their analysis.

If you would like to listen to ”2012- What’s in store for the year ahead” click here.

Listen to Blake Sterling and Dale Gillham in their two part series podcast on how to profit in 2012. With plenty of share market hints and tips, along with trading strategies and most importantly where to look to find stock to invest and trade this year. Simply click the links below to listen.

Trading and Investing Opportunities Part 1

Trading and Investing Opportuities Part 2

Dale Gillham

Chief Analyst, Wealth Within

Dale Gillham, ‘one of the country’s most respected analysts’ (Wealth Creator Magazine, Nov/Dec 2004), sought after key note speaker and author of the best selling book ‘How to Beat the Managed Funds by 20%’, has assisted thousands of traders and investors to learn to trade shares and become confident and profitable in their direct share investments. Tired of an industry saturated by quick fix gimmicks and expensive short-courses, Dale co-founded Wealth Within to provide ‘ real education and ongoing personalised support’, as well as independent investment advice to traders and investors who have become disillusioned by the market for one reason or another. As testament to this, Wealth Within launched Australia’s first and only nationally accredited Diploma and Advanced Diploma of Share Trading and Investment.For more information please visit www.wealthwithin.com.au