|The short term reality is that we are now seeing a retracement - the Australian market has faced this realism earlier than most other western markets. At this stage we are more likely to see a pullback in the order of a couple of hundred points in the medium term rather than a major reversal.
The longer term outlook is somewhat less clear as on one hand we have the prospects of sustained global growth. Rising interest rates is one cloud on the horizon but another cloud - perhaps a darker one that does not receive too much media attention is the mounting debt - both personal and national - but it may take some time for that issue to impact on the markets.
As mentioned in previous newsletters the trick in these uncertain times is to back the right sector and this is something that will be very much the focus of my presentation at the forthcoming SITM Conference. Never has it been more important to have your investment tools and plans in place than right now. Backing the right sector will still make you good returns in 2004, but likewise being overweight in the wrong sector will set your returns back.
To find out more about the Conference check out www.sitm.com.au for some irresistible deals that will make it easy for you to decide that being there is actually going to make you money in 2004 - that is what it is about.
Hope to see you there!
To keep a variety of trading strategies before you, this week we introduced to you Jody Osborne the Senior Writer for Optionetics. Jody has been working in the US finance industry for nearly 13 years. He provides daily market updates and insightful columns on the Optionetics website, www.optionetics.com as well as writing a variety of syndicated articles. Welcome Jody!
Enjoy the ride.