Upfront Investor 23-05-13 | Opportunity Knocks…

In the world of investing everything generally boils down to our perception of the investment. What I mean by this is we can look at all the numbers but it is how those numbers are promoted or sold to us that determines whether we choose to invest or not. Last week the Federal Government handed down its latest budget, and then attempted to sell to us on how good it would be for our economy moving forward. The underlying perception of the budget by the general public and business alike was one of uncertainty – can we really trust this Government and their budget numbers? This uncertainty was somewhat justified yesterday when the very department providing forward forecast figures to the Government revealed details of an overly optimistic outlook on estimating future commodity prices. Obviously if commodity prices fail to reach the estimated levels, this will create a big hole in the government’s proposed revenue targets.

It’s normal human behaviour to become indecisive if the future looks uncertain. In the process, indecisiveness causes us to become emotional and irrational rather than logical which greatly affects the choices we make. However for me and other astute investors the current environment of negative perception as to where world markets and economies are headed creates an opportunity of picking up great investments such as shares and property at bargain basement prices. Remember if you do what everyone else does then you will have what they have, and with the majority of Australian’s retiring on some form of pension, you need to make the decision – are you going to simply follow the herd of mediocrity or make the choice to secure your financial future?

So what do we expect in the market?

I mentioned last week we needed to see the market test buyer support between 5000 to 5100 points before things become clearer for the coming months. So far this week we have seen the market decline continue as I expected. The good thing is that the downward pressure by the sellers is not forcing prices to fall much which indicates strength and in turn the market should soon begin to rise again towards our target zone of between 5200 to 5400 points.

Given this, investors need not worry about any current fluctuations in the market right now as everything is unfolding as normal. Traders on the other hand should be looking for opportunities to profit when the market turns to rise again.


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%’, 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 and Advanced Diploma of Share Trading and Investment.For more information please visit www.wealthwithin.com.au