Your Investment Success Now!

I received the following in an email from our stock broker (Angus Knight from Kinetic Securities) and thought you might be interested …

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I would like to take the time to outline some of the potential opportunities that are emerging with the Australian financial markets post the turmoil of 2008. It is no secret that 2008 was a terrible year to be exposed to any type of financial instrument, the S&PASX/200 dropped 47% in one year alone, the worst one year fall ever.

This said, the market is showing signs of a recovery, it’s early days yet however there is no denying the value that has emerged from the carnage of 2008. Some quality blue chip stocks are trading at a 50% discount of what they were 12 months ago, many yields remain relatively high, especially in comparison to the prevailing cash rates and from an investment point of view, to shy from the market and these opportunities at a time when negative sentiment has peaked, may well prove to be a costly error in terms of opportunity lost when looking back at this time in years to come.

Investment is long term, trading is short term, the two are not to be confused or mixed. For traders, current market conditions are offering a utopia of volatility and big swings as the market struggles to find an equilibrium, accurately picking a direction can result in lucrative profits in quite short amounts of time. Best of all, losses can be kept to a minimum through use of stringent risk management measures.

If you require any help with the change or have questions that need answering, please contact your advisor. I am hopeful that this year will be a ‘clean slate’ as far as market conditions are concerned and that navigated well, the markets may be kind enough to deliver some positive results in 2009.

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