21st November 2008 - Market Report by Dale Gillham

Every day, we are being bombarded with news about the demise of the world’s share markets and economies moving into recession. While the media’s job is to sell papers, all this doom and gloom is becoming a little too monotonous. As we know the market is driven by changes in market sentiment, which tends to correlate with what many investment experts refer to as the investment clock. The clock itself assists investors to determine where we are in the current investment cycle and what they should do next with their money. With this knowledge the investor is able to make more informed decisions rather than the emotional decisions that are fuelled by the media frenzy.

A long time ago a wise individual told me that if you want to become wealthy, listen and learn from someone who already is. Based on this I have found that it is far more beneficial and profitable to block out the noise of the media and instead focus on opportunities that always present themselves when times are bad. As we know, good times never last and neither do the bad times; therefore right now you should be preparing yourself to take advantage of the opportunities that will present themselves when the market stops falling as the next cycle on the investment clock is for rising share prices and rising commodity prices.
Body1a




So what can we expect in the market?

During the last two weeks the Australian market has continued to fall away to a low of 3215 points as of this morning. You will remember in my last report that I thought the move up early in October was promising but not enough to convince me that we had seen the long term low I have been expecting. I also mentioned that it was likely the move up was a false move and that there was a high probability we would get one more move down with the market likely to fall to a low of between 3400 and 3500 points.

Whilst the fall has taken longer and moved lower in price than I expected, I still believe we are close to the bottom. Even though we are close to the bottom of the current downtrend, it is not wise to pre-empt a market bottom. Instead it is far better to wait for confirmation that the bottom has occurred before acting. That said, we along with many others are getting very excited about the market and are ready to enter once the low is confirmed.


Dale Gillham is a best-selling author, share market expert/educator and the chief analyst for share investment firm Wealth Within www.wealthwithin.com.au

To speak with Dale Gillham, please contact Nikki Mumford on 0410 424 769

 

Ad Available