Upfront Investor 19-07-13 | Ignorance is NOT Bliss…

There is an old saying that “ignorance is bliss” however when it comes to building wealth this statement couldn’t be further from the truth. As an investment expert I am constantly amazed at just how many people seem to treat a comfortable future retirement as a ‘nice to have’ rather than a ‘must have’. It’s little wonder that as a nation more than 80 per cent of us will rely on some form of government pension when it comes time to retire. If the Government ever decides to pull the plug on the old age pension (a decision that I believe we are likely to witness during my lifetime), there will be a lot of Australians in serious financial trouble.

There is only a very small percentage of the population who actively work to a plan for financial independence. In fact I find most people spend more time planning for a holiday. Perhaps it’s the belief that constructing and following a plan is difficult (it’s not). As I always say, successful people do what most don’t.

If you want a comfortable retirement there are three wealth laws that you must abide by. The three laws are:

  1. Spend less than you earn;
  2. Invest your surplus wisely (at least 10% of your income); and
  3. Leave it alone so it can grow.

It’s as simple as that. If you actively apply these laws to your own life through a financial plan then significant wealth will be yours.

So what do we expect in the market?

This week at the time of writing the All Ordinaries index was hovering around 4976 points and had barely moved relative to last week’s gains of around 219 points. This is to be expected for two reasons; one is how the market is just below a major level of resistance at 5000 points and this will slow it down temporarily, and the other being that it is the month of July which is a time on the investing calendar when the institutions play ‘wait and see’ in the lead up to company reporting.

Further to this, as the market has not continued up strongly this week we know that a lot of stocks are unlikely to be confirming clear buying signals. This is a sign for investors and traders to be watching closely as I believe it won’t be long before direction returns and we see the market rise. Remember that the All Ordinaries index is only two weeks out from the recent significant low and probability suggests it is more likely to rise for at least the next six to nine weeks than fall. Either way, we need it to move.

XAO 19-07-13

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.