Market moves to all-important 4400 point high- Dale Gillham market report
For example, if you use a margin loan to fund your share portfolio you can pre-pay next year’s interest before 30 June, and you might also be able to do this with other types of loans used for investmentpurposes. Other methods of minimising tax can be selling off shares you might have that are currently in a loss situation to offset capital gains on shares you have sold that made you a profit. After all, if you really like the shares you can always buy them back sometime in the next financial year, and you may be able to buy back in at a lower price if they continue to fall. There are many things you can do to minimise your tax if you plan for it, so I suggest youtalk to a good stock broker and or your accountant to find out exactly how they can help and what is best for you.
This week our market finally moved through the all-important 4400 point level, which has held back the rise since August last year. This is great news and implies that our market should now move up to my price target of between 4500 and 4600 points over the next six to eight weeks. However, before you get too excited, we need to be aware that when a marketdisplays resistance at a level over a sustained period and finally breaks through, that sometimes we get a secondary reaction. This secondary reaction is like a rubber band that pulls the market back to test the level before allowing it to continue its journey. Given this, we need to be prepared that over the next week or so we may see the All Ordinaries index fall back through 4400 points before is rises once again. So if you are buying into the market right now just be patient as probability says the rise will come soon. Sectors we are looking at for opportunities are Materials, Energy and Health.