In the Media

Has the Market Bottomed?

Australian Securities Exchange - 16 Nov. 11

The sharemarket has been on a long frustrating journey over the past few years, during which investors' emotions have run hot and they have wondered many times if the market has bottomed. On a car journey we have a map, road signs and predictable situations such as stopping for rest breaks. With the sharemarket these maps, signs and predictable events become evident in the study of market cycles and they can tell us if we are actually there yet or if there is further to go...

ASX Feeling Heat of GFC

Geelong Advertiser - 12 Nov. 11

The Australian stock market is starting to feel the pain of the latest world angst about the global financial crisis. Yesterday's dive on the ASX was hardly a surprise. The US is in deep strife; the sovereign debt problems of Greece and Portugal seem to be worsening; Ireland is looking at bankruptcy unless someone bails it out; and the great Asian hope, China, is looking to curb its spending to ease the heat in its economy. Is this the second round of the GFC we've been warned about for so long breathing down our necks...

Bull and Bear Tussle in China

Money Magazine - 07 Nov. 11

Every day in the morning news we are told about what is happening in the US markets, as if the US market is the barometer of what we can expect on our market. While I accept that the US market can influence world markets, its statistical correlation to our market is approximately 60 per cent, and I would argue Australia has a similar correlation to other world markets. That said, we are becoming more aligned to Asia, a region critical to the future of our economy. What is important to understand is that Asian share markets do not necessarily run in harmony with western markets, but rather have their own unique timing...

Greater market openness needed

Geelong Advertiser - 15 Oct. 11

ASIC is well and truly in the driver's seat as regulator of the Australian share market. So one would expect all remaining road blocks preventing a fair and transparent market place have been removed. However, I believe there are some areas that still deserve closer scrutiny. One area of particular importance for ordinary investors is the need for a greater degree of disclosure from market participants regarding short selling, especially in bear markets...

How to Make The Most of Market Volatility

Australian Financial Review - 12 Oct. 11

The more volatile the market is, the more expensive put options become, adding 10 to 15 per cent to the cost of the shares, says Dale Gillham, chief analyst at share education and investment company Wealth Within. They also need careful watching because their value decays as they approach maturity. Options over the S&P/ASX 200 Index would be better value, especially for a large portfolio. “Even so it can be cheaper just to use stop losses,” Gillham says. “When you buy, put in a stop-loss (at which you sell no matter what). The golden rule is let profits run and cut losses short. It’s as simple as that...