Another week and the market continues to hold.
Last week I was looking for some sign that the market would pull back. This week did nothing to confirm my suspicions. Again the market continued to hold and actually make some ground.
We did however see a sell down in the overseas bond market which is some cause for concern, but markets continue to hold. As each week goes buy there is less chance that the markets will pull back to the lows of March. From here if we do not see weakness soon we could see the market continue to move up.
What to do!
At this point I am looking at those sectors which have not risen high with the rest of the market mainly property and infrastructure stocks. I am cautious on financials and energy stocks and using this as an opportunity to take some profits.
There is also plenty on money for the taking with capital raisings, so make sure you look closely at the paper work companies are sending out. For my clients we will contact you.
I still remain cautious as reporting period is coming up in August, and we could see a drop leading up to it.