"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.