Upfront Investor Australian Share Market Report 21/04/11

When looking for growth, investors often attempt to blindly follow the heard as they look for the best bang for their buck. So where is the best bang for your buck right now? Traditionally investors might look to property but currently property prices are forecast to be flat and investors are right to expect that property prices may be subdued for some time. Therefore, in my opinion it is critical that investors consider the investment clock, where it is now and where it may be going. Smart investors have a spread of investments across a number of asset classes and look for opportunities in the asset class that has been underperforming and is most likely to move with the next phase of the clock. However, sadly the majority are fickle minded and attempt to jump to the next best thing after it is already well underway.

Right now I believe the investment clock may have ticked past property as an asset class, and this to some degree may explain why we have seen a lot of the smart money being parked in cash over recent times. So where is the clock headed to now? Given that the share market did not continue to fall away this month I believe the scales will shift back toward shares for the short to medium term. Unfortunately for most investors, as is typical, the horse is likely to be half way round the track before they make their move.

What do we expect in the market?

Over the past week the momentum of the market continued to slow, and whilst the move has been mainly downward it was not with any great strength. This suggests that once Easter is over we could see the Australian share market move back into the upward trend as we search out what I believe may be our yearly high. If this occurs then I suggest that we will see a strong move through the 5,000 point mark as the share market heads to my short term target at around 5,200 points by early June, with the next low likely to occur around late June or early July. How far the market rises during this period will determine whether or not the second half of 2011 will be strong.  

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 asindependent 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