The Market Wrap Wed 27-4-10

Higher Lows are now expected.

By Jason Fittler

They say that predictions about the stock market tell you more about the person making the prediction than what happens in the market. Right now we are getting all sorts of predictions coming through.

What is important is not to get caught up in all of the hype. We have one side calling a major drop in the market and other saying that the Bull market is back.

Property investors are calling for a property shortage and the prices are about to take off get in now. (70% of advertising in papers is for property so their motives are clear.)

So what am I selling? Lifestyle. What holds true is that the more income you have the better your lifestyle will be. This can mean more toys, bigger house or less time working and more time with family. Right now there are plenty of good opportunities to buy quality blue chip and second tier shares at large discounts and sustainable high dividends. An average well structured portfolio can now achieve a yield of 7.5% and expected growth of 10%pa.

For me if the market goes up I will use some of the profits made on the blue chip stocks to buy some high yielding second tier shares. If the market goes down I will use spare cash or gearing to buy the blue chips at a cheaper price.

The aim is to increase the income of your portfolio and improve your lifestyle.  

Call (07) 4771 4577 and let's get started.