Market Wrap 28-10-11

By Jason Fittler

Big week for the market, I can confidently say that the bottom is in for the market.

I do expect to see the market slip back and will be looking to get all investors in. But median term I expect to see the market move back towards 4500 and higher in 2012.

It is clear that the bulls will be buying up around 3900 which put a floor on the market.

Economic conditions are still not perfect and until we see an election in both the US and Australia bring about the formation on a stable and controlling government I expect that the volatility will remain.

The problem at present is that Governments have a 2-3 year outlook, with the main focus being on getting re-elected.

Large businesses have a 10-20 year investment time frame and as such need to know what the rules will be over this period of time. At present large business have little idea of what is going to happen tomorrow let alone in 12 months time. This lack of clarity means that big business will not commit long term fund for investment.

I continue to buy big blue chips for the income and hold for the long term growth. I expect that by the end of 2013 the market will look a lot better.

Do not hold on until then to invest as the timing on these things is never 100%.

By quality and take a long term view.

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