Market Wrap - Week Ending Friday 7th Dec 07

By Jason Fittler

"Our market closed up 100 points last week and is heading back to the all time highs of 6800, there are still a number of good buys around like ANZ, NAB and Platinum Capital which have been sold down in this very volatile market."

USA, USA is the chant you heard last week with good old George Bush agreeing to lock in interest rates for those affected by the sub prime for five years. This has now increased the expectation of a rate cut this week in the US.  Coupled with the Bank of England cutting rates and our Reserve Bank leaving our rate at 6.75% we expect to see a positive Bull market going into Christmas.

Although this is a positive for our market which generally closely follows the US, we do still have one sticking point. Base metals had a horror week last week with big falls in Lead, Copper, Zinc and Nickel. Given that BHP and RIO are two of the major players in our market base metal prices will cap any up side in our market. When looking at the chart for base metals a recovery in the prices do not look likely in the short term. However, keep in mind that base metals are coming off recent highs and are still higher then where they were a year ago.

Our market closed up 100 points last week and is heading back to the all time highs of 6800, there are still a number of good buys around like ANZ, NAB and Platinum Capital which have been sold down in this very volatile market. The trick is still being very selective about which stock you buy. To do this you need to thoroughly research the stock, something which we spend a lot of time doing, and be ready to take advantage of the opportunity when it presents itself.
 
Until next week.