Upfront Investor 14-06-13 | Why ‘One Vote, One Dollar’ is Wrong…

It doesn’t take Einstein to work out how allowing donations to political parties can influence government policy, however the money to fund our political system, which seems to be ever increasing, has to come from somewhere. Whether or not you believe that our governments should cost what they do is for another discussion as there is a big debate to be had around this issue. What is important for all Australians to decide right now is whether or not governments ought to be permitted to accept political donations.

Consider the political process in the US as an example of where this occurs and in my opinion has gone completely wrong. The saying ‘money is power’ couldn’t be more true there and we have seen the ramifications of what happens to an economy when this occurs. So should Australia continue to allow this practice here when we have already seen examples where financial muscle outweighs the interests of ordinary Australians?

I don’t think so and this is why changes to the current legislation are important, even if they don’t currently go all the way to addressing the issue as just getting people talking about ‘one vote one dollar’ means we are heading in the right direction. This concept of making votes count certainly got my attention, however, what I don’t agree with is back dating the payments to political parties based on past votes.

So what do we expect in the market?

This week the Australian market continued to move down, surpassing my lower limit of 4750 points, to be trading at around 4700 points. The current decline has now extended to four weeks and therefore my analysis suggests that the market is likely to turn around and trade up next week, or at least begin to move in a sideways direction. This outlook is further confirmed by this week’s trading range so far, which is smaller than we saw occur during trade the previous week. What this tells me is that selling momentum is beginning to wane.

Remember that overall the market is still bullish and therefore we need to assume it is likely to remain so until it tells us otherwise. A clearer picture on the market will be possible on confirmation of the next low as it is the way the market unfolds from this point that will greatly determine direction for the second half of 2013. A strong rise over the next fortnight back towards 5000 points will provide an indication of a continuing move to the upside. Given this, investors need to continue to be patient over the coming weeks.


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 adviceto 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 and Advanced Diploma of Share Trading and Investment.