Upfront Investor | A Controversial Proposal….

An interesting report landed on my desk this week titled ‘Balancing Budgets: Tough Choices We Need’, published by an independent think tank called the Grattan Institute. The author, John Daley has suggested several ways the Government could add around $37 billion to its budget and shore up the current deficit, including broadening the GST to include fresh food and private spending on health and education as well as limiting tax concessions on superannuation. In other words the author’s answer to current budgetary issues is to simply increase our taxes.

I find this answer to ‘Government woes’ as extremely controversial. Why is the focus now back on ordinary tax payers who seem to be constantly pushed to cough up more money for Government funding when there is never any accountability as to how it is spent. If the current government is not going to get the money from the two big revenue raising initiatives legislated by the previous government; the mining tax (where essentially it was coming from government granted exploration of our precious reserves) or the carbon tax, then who is going to pay? If you are thinking like me you probably already know who.

Think about it this way. If the Government were employees of a business and the same mistakes were occurring, what would happen? More than likely they would be fired and shown the front door. Perhaps Politician remuneration should be linked to economic and reform performance? Now there is an idea. I’m sure such an initiative would have the Government thinking long and hard before making a decision that can directly affect the lives of millions of Australians.

So what do we expect in the market?

The All Ordinaries index has this week continued to consolidate around support at 5300 points as investors look to cash in on some of the previous gains, awaiting confirmation of the next swing upwards. Overall, the All Ordinaries Index remains firmly bullish and therefore as at the time of writing I’m confident the market will turn in the next week or so to resume the rise.

It is during times like these when price action is subdued that the traders in the market will be watching closely for stocks that may be close to triggering buy or sell action. You should be doing the same. Also, in times like this where the markets are a little ‘quiet’ it’s a good idea to make sure that your paperwork is up to date and decide whether you need to consider moving your stops. By getting this ‘maintenance’ work out of the way while conditions on the market are essentially quiet, you will free your mind to be sharp when and if new opportunities arise.


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.