Australian Share Market: Bullish Mood is in The Air…

This week reporting season kicks off for the Australian share market, with Transurban, RIO Tinto and Cochlear being some of the first companies off the block. Bulls in the Australian share market are sensing the buzz that is building for the second half of the year, and this excitement has stirred interest from first time investors who are asking, am I too late to invest?

If you are new to investing, now is a good time to invest. Why? Given the current bullish mood in the Australian share market, and as expectations for many Australian companies are improving, we are more likely to see the market continue to rise than fall from here. My analysis indicates that Australian shares are likely to see price growth of between 5.0 and 10 per cent over the coming months.

That said, whether you think the market will rise or fall in the next six months ought not dictate whether you will invest. To build real wealth you need to be looking much further ahead.

So, what is on the horizon?  The Australian share market is shaping up for an extended bull run that will take the All Ordinaries Index to new highs within the next two to five years and as an investor this is the run you ought to be on. You have two choices. You can:

1)     Do nothing, which means your wealth plans may rely on bank interest, or

2)     Seek guidance from someone with experience in the market, or

3)     Start investing today by dividing your capital into 10 quality blue chip companies.

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Check out our Your Trading Mentor ten lesson course, it’s perfect for anyone who has no knowledge or those just starting out.

So what do we expect in the Australian share market?

Following a strong rise across the broader market last week, the All Ordinaries Index finally made a very convincing move through the lower band of the target zone at 5600 points. For almost 12 months I have talked about this occurring in different trading circles and finally the market has delivered. At the time the analysis indicated that provided the All Ords moved through the 5600 point level with gusto a rerating of the top end of the target for 2014 was required. Given this has occurred the new target for the year is between 5800 and 6000 points, which will put a smile on the faces of many shareholders. However, just remember that no bull run lasts forever, so watch for headlines repeating that this rise is unlikely to stop as this often shows that the next top may be near.

image of all ordinaries index australian share market from 01-08-14

New target for Australian share market is between 5800 and 6000 points this year

To your profitable trading,

Dale Gillham
Chief Analyst
Wealth Within

Dale Gillham, ‘one of the country’s most respected analysts’ (Wealth Creator Magazine, Nov/Dec 2004), sought after key note speaker and author of the best selling book ‘How to Beat the Managed Funds by 20%’. Dale has assisted thousands of traders and investors to learn to trade shares and become confident and profitable in their direct share investments. Tired of an industry saturated by quick fix gimmicks and expensive short-courses, Dale co-founded Wealth Within to provide ‘ real education and ongoing personalised support’, as well as independent investment advice to traders and investors who have become disillusioned by the market for one reason or another. As testament to this, Wealth Within launched Australia’s first and only nationally accredited Diploma of Share Trading and Investment.