Good news out of the US pushes the market up.
Last week was Good News Week. Starting with Goldman Sachs coming out with a result above expectations, this led the market to expect the banking sector to be in a much better position than previously expected. Back home, RIO announced that the iron ore sales were on target indicating a good result for the coming reporting season.
We also heard from a number of US economists that the worst of the recession is behind us; once again this market can see blue skies. Now while I welcome these comments I still remain cautious. We still have a long way to go before we are out of this recession, the news certainly allows us to buy more confidently but it is a stock pickers market.
Timing is the name of the game; there will be plenty of opportunity over the coming 12 months, make sure you are ready to act when called upon.