Wild ride starting to reap rewards
Published in the Geelong Advertiser, February 2013 by Dale Gillham
In August last year I wrote an article for the Australian Securities Exchange, and produced a recording titled the Best Time To Invest In 40 Years.
At the time, I suggested that while there was a possibility our market may fall further, I believed it was quite near the time for the market to become very bullish again, even if it did fall in the short term.
In looking at what has occurred, the market did not fall, but it has become quite bullish.
The question on my mind is how many people have taken advantage of this new bull run?
Having worked with investors and traders for nearly 20 years, one thing I can honestly say is that most people lack patience when it comes to investing and that they tend to do the opposite of what they should do.
Right now people are still leaving the share market when they ought to be doing the opposite as they are still focused on the poor performance of shares over the past few years.
Looking at the past and expecting the future will be the same is not wise, but looking at what might be the next best performing investment is wise.
So what do we expect in the market?
This week the market has moved higher still and at the time of writing was challenging 5069.5 points the highest point traded by our market in almost two years.
This level has been one that has provided heavy resistance since early 2011, and breaking above this level would be further confirmation that our market will continue to be bullish and head toward my next target zone.
I believe the All Ordinaries Index will move up to between 5200 and 5400 points, which would be fantastic for those looking to invest in shares.
That said, just as it is with gravity, when it comes to the market we also say what goes up must come down, eventually.
Instead of being fearful about a pull back on the market which I believe will occur over the next one to four weeks, investors ought to welcome such a move.
We need to see a pull-back in price to confirm that the current bullishness will be sustained medium term.
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