Market Wrap - Week Ending Friday 11th July 2008

By Jason Fittler

"Our market is cheap, in 12 months you will agree with me but it will make little difference unless you act."

Let’s talk numbers.

17% - the amount the market dropped 2008 financial year. 

9% - the amount the market fell June 2008. 

4900 - where the ASX 200 is now. 

6600 - fair value for the ASX 200. 

25% - the amount our market is under valued. 

2 standard deviations is the amount our market is undervalued. 

1 in 198 is the chance of our market being this cheap. 

$145 is our model’s value for oils top price also the price oil hit last week. 

$137 - where oil closed last week.

2005 - the last time we saw the market at these levels. 

9% is the average yield for banking stocks right now (grossed up). 

$12.2 billion is our budget surplus. 

4.4% is our unemployment. 

7.8% - short term interest rates. 

$1.20 is what the Aussie dollar will be worth against the US in 12 months. 

2 - the number of future interest rises we will have;

and 1 is the number of chances you will have to buy into a market such as this.

Our market is cheap, in 12 months you will agree with me but it will make little difference unless you act.

Until next week.

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