Will the trading range hold?
Over the past weeks we have seen the market test the 4500 low point, once again the market pushed back up to 4700 before re-tracing the gains over the past couple of days. Australian companies are currently in their reporting season and although a number have come out with good results the focus has been on the under performing companies. So far we have seen an ordinary result from Telstra and a poor result from Toll Holdings.
BHP and RIO have also fallen over the last couple of days. I expect the next couple of weeks to be volatile while investors trade on the back of any news. I however will be using any major sell down in good quality stocks as an opportunity to add them to my portfolio.
Right now is a great time for the long term investor, buy good quality stocks paying a high yield and hold for the next 3-5 years, the days of the short term gains have past for now.
Let the institutions rip themselves apart while we sit back and enjoy the healthy dividends.