So what message do these out of court settlements send to us? If you ask me, it seems to be one law for big corporations with a lot of money and influence, and another for Joe average. History shows us that whenever there is a crisis, illegal activity will come to the surface and the GFC is a recent example of powerful organisations doing what they please without regard for the general population. Powerful organisations should not be above the law and politicians need to worry more about doing what is right, rather than jumping on bandwagons while attempting to look good.
What do we expect in the market?
This week, buoyed by news that Chinese demand for commodities is likely to remain stable, the Australian share market edged back above 4,300 points. The news in China was followed by a further good reportthat employment in the US may have stabilised, with world markets reacting positively to both announcements. You might remember some weeks back how the news was in stark contrast to this, and is evidence of how market sentiment can quickly change. That said, the charts confirm market direction, not news, as they tell us the strength and direction of buying and selling. Right now myanalysis still indicates a rise is likely over the next couple of weeks to around 4500 points.
Markets are driven on perception and positive newswill typically push markets higher. Given that both the charts and world news are pointing to higher prices, the current rise gives investors some breathing space, and possibly opportunities to start adding to their portfolios again. That said, remember, we are not out of the woods yet as reporting season is just around the corner and this is when big corporations both here and abroad will reveal some home truths.
· He is a bestselling author with the book “How to beat the managed funds by 20%”
· He is a regular expert on Sky Business News and The Business Channel program Your Money, Your Call. Dale and his private investments company Wealth Within (where he is chief analyst) were last year the subject of a special report on National Nine News, where he was asked to impart share market advice to viewers. He has also been interviewed as an expert on both the National Nine News and Channel Seven National News.
· Wealth Within runs Australia’s first and only Federal Government accredited Diploma of Share Trading