Upfront Investor | Big Banks Continue to Destroy Customer Service…

Australian banks have always claimed to be customer focused and to provide choice in banking products for consumers, yet we are continually seeing the rights of bank customers being eroded. Some time back we saw the banks introduce a minimum credit card spend without a pin or signature required and many customers were not happy about it. Did you see your bank come out with an offer to reduce your fees or your interest rate in return for this heightened level of risk? I doubt it. The latest push by the banks is to force consumers to do away with a signature verification method for credit card payments. What will they think of next?

According to the finance industry around 45 per cent of credit card users in Australia will sign for purchases, so what message does that send to the banks about customer preference? We vote with our feet, right? The banks claim this move will cut down credit card fraud. Whilst this is a concern, it seems in conflict with their policy for a minimum spend for approving credit card purchases. All of these cost saving initiatives continue for the banks and retailers but I don’t see credit card fees and rates getting cheaper for the consumer, in fact aren’t we seeing the opposite occurring? So are we going to continue to allow the banks to decide what’s best, or are we going to fight the changes?

So what do we expect in the market?

This week the All Ordinaries index broke through the significant 5000 point barrier. Importantly, the market has not traded around this level since late May this year. For quite some time now 5000 points has proven to be a powerful level of resistance to any further moves up on our market. You only need to look at a chart of the market from 2009 to see how this level proved too strong for buying momentum in 2009, 2010 and 2011. This week’s firm break to the upside above this level provides more confidence in a further rise.

As I mentioned last week, with the market only two weeks out from the recent significant low it is much more likely that the market will rise than fall. This week’s swift break above 5000 points adds much more confidence to this view. Both traders and investors are best to take a proactive approach in monitoring their stock watch lists as we are likely to see some solid buying opportunities over the coming weeks if prices continue to rise.

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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.