Upfront Investor Share Market Report 16/11/09

http://www.youtube.com/watch?v=8Fp5VfB20fY

In the 2008 ASX share ownership study, it states that 58 per cent of people invest in shares to either make money or accumulate wealth. What is interesting about this is the fact that a large percentage of these investors seek their advice and information from newspapers and the internet, rather than from advisors or financial planners. Is this because individuals believe they are more equipped to make investment decisions than the experts, or is it because of a lack or confidence in the advice they may receive?

According to the survey more people rely on family, friends and colleagues for their source of advice rather than brokers, and use financial planners only slightly more than their family and friends. I am all for doing it yourself when it comes to investing, but in my experience many investors lack the knowledge and experience to fully understand how to manage a direct share portfolio. Quite often investors look in all the wrong places for advice and information - the end result being that they make emotional decisions rather than educated ones designed to achieve their outcome of wanting to make more money or accumulate wealth. As Albert Einstein once said “Education is the progressive realisation of our ignorance”

So what can we expect in the market?

Although unconfirmed, the strong rise in the market over the past week looks to have signalled the end of the down move that we have experienced since 15 October. To confirm this, the All Ordinaries Index needs to fall away for one to four days and hold above the recent low of 4515 points on 5 November. I believe the market will test the low over the next few trading days, and then turn to move up once again.

As I have previously reported, I believe the market will rise to around 5200 points into January 2010 and possibly higher into February before moving down into its yearly low at the end of the first quarter of 2010. That said over the past few months the markets cycles have been shorter than normal, so we need to expect that this could continue and that the next low could occur in January rather than March. For now, enjoy the rise and what looks like to be a good Christmas as opposed to last years doom and gloom.

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