Share Market Wrap 20th June 2008
It seems that investors are failing to acknowledge that that market has changed and would prefer to cling to how they have done things in the past. But as we all know, the market has changed and so must the investor’s expectations if they want to get reasonable returns in the future. Prior to 2003 most investors were happy if they received a 10 per cent return on their investments. But as a result of the bull market in recent years, investor’s expectations are continuing to remain high.
In my opinion, investors now need to become much more realistic in their expectations and more selective in the stocks they hold. While good returns are still possible, we now have to work smarter to achieve them.
So what can we expect in the market?
Last week I indicated that I didn’t expect the market to fall below 5380 points and that it was more likely it would find support and start to rise. And while the market didn’t fall below 5380 points, it hasn’t exactly risen as I expected and it is still too early to determine if the next bull-run is starting given that the market fell away yesterday.
While the volatility in the market continues, I believe it will settle next week and the market will start to rise and continue on for at least the next 4 weeks. That said we still need to be prepared in case the market falls away, therefore I recommend investor’s continue to exercise caution, to only invest in quality shares and above all protect capital by using stop losses.
Dale Gillham
Chief Analyst
Wealth Within
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