Articles for: Australia

In November of 2007, after five years of phenomenal growth, the Commonwealth Bank of Australia touched a new record high of $62.16. Of course since then the bank, which was the very definition of a solid blue chip company, has since dropped over 60%, last week returning to levels not seen since early 2003.

As I sit and write my editorial – sitting on 100% cash and watching markets rise solidly over the last few days – I challenge my conviction.

A question I’m constantly asked is, “how do you trade this type of market?” Well, if you must trade in this market then do it safely and yes that is possible.

From an investor’s point of view, it would be dangerous to think that things will turn around quickly and rush to buy up stock purely because they are “cheap”.

Will we love again? Will we ever reach a time when we can relax about our job, our mortgage, about our life time savings, go out and have a great time and not worry about tomorrow?

Welcome back to Safety in the Market in 2009 as we kick off the year!

Welcome to all our Safety in the Market traders to this month’s newsletter and of course Happy New Year.

I am sure most of you will recall how Noah let out a white dove from his ark after he thought the great floods were over.

With the equity markets still in disarray from the tight global credit environment, many observers will be looking forward to 2009 with continued pessimism.

The outlook for 2009 is far from certain and there is considerable debate as to whether the market has bottomed, and whether we will see any substantial recovery within the next 12 months.