Another week and although the market wants to move higher the confidence is not quite there.
With the Greece debt issue slowly being resolved the market is still very nervous and is unable to push higher. At present we still expect that we could see the market back down around 4100 however it is getting tougher each day to hold this line.
The market is still cheap at these prices as such I am happy to buy at the current levels as long as you have a long-term view. If we see the market back around 4100 I will look to be fully invested.
I expect to see the market back above 4500 in the New Year and trading back between 4500 and 4800. The next big query is when to you lighten up and take profits in the coming 12 months.
Please note that this advice is in regards to investors with a long-term risk profile.
For those who are retired I would look to be a bit more cautious and continue to hold cash in term deposits until we see a bit less volatility.
I think that the next few weeks will be interesting and we will be watching closely.