Buyers move in to stop fear fall
Published in the Geelong Advertiser, June 2013 by Dale Gillham
With all the shenanigans that have been going on in Australian politics over the past few years, we have come to expect Australian political leaders to tell you what they won’t do and then do the opposite.
As an experienced voter, I’m hard-pressed to think of one past political leaders who hasn’t been caught out.
But how does this look to young Australians who may aspire to move into politics or are now of voting age?
Polls suggest young people are not very positive about our political leaders and are not engaging in politics.
Politics has been portrayed by news media as less about facts and more about bickering and chest pounding, so it’s no wonder 18 to 25-year-olds are generally uninterested.
Ask young Australians what colour ties male politicians have been wearing and they will probably be able to tell you the answer is blue.
If you ask them what Bills have passed through Parliament in recent years, most won’t know.
They may talk about the carbon or mining taxes without knowing arguments for or against this legislation.
Kevin Rudd hopes to get Australia’s young people engaged. Let’s hope he can.
What do we expect in the market?
Earlier this week, sellers resumed their dominance on our market with the All Ordinaries falling below the low of the week ending June 14.
Fear feeds off fear, and recent news of a slowdown to US economic life support as well as more reports of weakness in China was the big catalyst for this most recent move down.
However, as I have often said, it is when market news appears at its worst that we tend to see buyers return and push the market higher.
Mid-week, buyers did exactly that as the market bounced around the important 4600-point level.
The market is now trading back above 4700 points and, provided the close this week shows strength, my expectation is that we are still likely to see a further rise to around 5000 points in coming weeks, albeit at a slower pace than first expected.
With recent weakness causing a number of high-quality companies to pull back, there may be some great trading opportunities unfolding over the next few weeks.
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