We had some technical difficulties getting up my power point slides for hte first 10 minutes, however the sound and information up to that point was really good. Follow the link to watch this seminar.

Cheers

Dale

Janine Cox our senior analyst has just had her first article published in the ASX newsletter. It is a great read that shares what is in store for the retail sectors and stocks within the retail sectors. Just follow the link to the ASX website.

Regards

Dale

This year’s budget is squarely aimed at supporting groups of people, the first being lower income earners, and the other being families. Leaving this aside, is giving cash handouts really a good use of tax payer’s money or is it likely to do more harm than good?

Many Australians are dependent on welfare, which is due in part to policies of past governments, and as a country we face some pretty harsh statistics in this area. Today around 80 per cent of income tax collected is paid back out in the form of welfare payments. I argue whether it is wise to implement a budget that aims to increase the handouts in the hope that this will support consumer spending, which we know is in decline.

I would rather see my tax money being spent on tools that assist Australians to learn how to become self-sufficient rather than further increase their dependency on handouts. Unfortunately, governments continue to enter into the practice of buying votes rather than making the necessary tough decisions.

Australia is the land of opportunity, but we are not silly and so we know when someone is trying to sell us something. Our challenge as a nation is that many people simply don’t know how to find opportunity, or are being denied the chance.  So instead of cash handouts, give people a chance to create a future for themselves and their families. 

So what do we expect in the market?

This week international turmoil wiped the smile of the faces of many investors as they watched bond prices fall, which in turn caused the big institutional investors to sell down equities in order to balance out their risk. This had a ripple effect which flowed onto Australian shores, putting downward pressure on the Australian share market and wiping out much of the recent gains. Even the heavy weight blue chip companies like RIO Tinto were not immune, helping push the All Ordinaries index back below 4400 points.

While I would have preferred the market to continue to rise further before it pulled back, I had previously expected that a retest of the 4400 level may occur before the market moved higher towards the top end of the target zone at around 4600 points.

What is interesting for investors to take notice of is how some stocks lost a lot more than others on the most volatile days. A number of the miners suffered the most, and typically, the more defensive companies like the financial stocks, healthcare, telecommunications and some consumer staples companies held their ground.

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 share market is very transparent as every transaction is recorded and reported by the millisecond and is made available to anyone who chooses to explore the data. Therefore price manipulation is quite hard, and if it actually does occur it would normally balance out quickly because of the liquidity and transparency of the market. However, with property, finding out details of actual transactions is often a huge challenge if not impossible to get, and further, it is also not timely information.

Unless you show up at every auction or ask each agent personally, how do you know what each house sold for in the suburb you wish to invest in? Understanding what price trends are doing in both shares and property can save you thousands, and surely in this technology age the sale of each house could be reported in a very timely manner and made available to all. Doing so would bring more transparency and make the property market fairer for all.

Unlike the share market, in which the Australian Securities Exchange is the middle man between the buyer and seller that ensures an efficient market, we have a property market where the middle man is the real estate agent that is self-interested and paid by the seller of the property. Now I may be sceptical but is that way we buy and sell property really fairly for all? 

So what do we expect in the market?

Last week the Australian market started out with a nice bullish move to take it well and truly above the all-important 4400 point support level that we have been talking about. The rise on Monday and Tuesday was quite fast, which is why I believe over the past few days it has slowed down so as to return to a normal rhythm, in a case of what goes up must come down.

Remember, the longer the market holds above the 4400 level the better, and as long as we do not see any major falls I am still confident that our market will continue to be bullish in the short term.

Last week price rose to the lower end of my target at 4500 points, and after a brief pause over the next few weeks in which the market will slow down I see the overall trend as remaining up. We have seen some volatility in the past few days that could delay the rise, however, I still expect that the market will move up to my next level at 4600 points, and possibly beyond.

Now before you get too excited, I am still forecasting that this level will be achieved sometime in the first half of June to create our yearly high before the market pulls back into a yearly low sometime around September.

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

It is a very attractive to think that with no knowledge and only a small amount of money you could sit behind your computer and make a living. The reality is that there is no super software that will make you rich and learning to trade any market like a professional cannot be done in a few days. If it was that easy then why do so many people fail? There is no magic formula to getting rich quick and anyone promising well above average returns is probably trying to get you to purchase something that is overpriced and ineffective. Whether it is an online website or a person who magically calls you out of the blue, always qualify and quantify everything they claim. Don’t just believe what they write or claim. Lastly before making decisions talk to your accountant or financial planner and visit ASIC’s Money Smart website.

So what do we expect in the market?

The Australian market has continued to hold and even rise slightly to be trading just above the all-important 4400 point support level. The longer the market holds above this level the better as it will only serve to build traction that will enable the market to move to my next target level between 4500 to 4600 points. I still expect that this level will be achieved sometime in the first half of June as the market moves up in what I believe will be a slow and steady pace. Given we will be looking for our yearly low sometime around September, it is possible the move up will last longer with the high moving into July, but it is better to err on the side of caution. As such I would expect that the time to buy before moving into the yearly low is slowly coming to a close, and anyone looking to enter the market in the second half of this year may be wise to hold off buying until the yearly low can be confirmed.

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