Articles for: AAI-SPOTV

As we close on the end to the current financial year many are asking are the recent sell offs in the equity markets the sign of more to come. It has to be said since the early May we have travelled predominately sideways and this last climb to yearly highs has been very weak with volumes and average ranges shrinking. The fundamental news in the market has also been negative against a rising prices, this combined with the need for many stocks to go into capital raising by issuing more shares may have finally weighed the market enough for it to take a break.

The market myths that many people seem to hold as truth often amaze me. One from an Australian perspective is that if the US Market has a down day (overnight in Australia) the Aussie market will finish lower the next day. No doubt a similar belief may be held in the States regarding Australian and Asian markets, though I am sure their movements are far less publicized.

The current up move that is occurring across many of the major equity indices around the world has many including myself asking, at least rhetorically, how far can it go? A long way if it is the beginning of a new bull market! However, let’s assume for this discussion that we expect some more bumps along the way before a new bull market takes hold.