Market slip opportunity

Published in the Adelaide Advertiser, May 2006 by Anthony Keane

This week’s share market fall is an opportunity rather than a reason to panic, says author and market analyst Dale Gillham.

He said yesterday the market had weakened in May in each of the past two years and he expected the all ordinaries index to drift back below 5000 points in the next two weeks.

“It had to happen. It’s not something to panic about – it’s something I can take an opportunity from,” said Mr Gillham, a keynote speaker at the Adelaide Investment Expo which runs until tomorrow at Wayville Showgrounds.

Mr Gillham said the bull market in Australia had been running for 38 months. Ahead of the 1987 stock market crash the bull market lasted for 39 months he said.

The author of How the Beat the Managed Funds by 20% said there were always buying opportunities in the market – it was simply a matter of buying stocks on the way up.

“The Australian market’s too strong to crash. We have a different economy now – back then Australia wasn’t economically sound,” he said.

“The commodity sector is running really hard, and that’s always the last sector to run in a bull market.”

Mr Gillham said he expected the next “fall” in the market to be a sideways or downward drift rather than a heavy plunge.