Market Wrap Friday 11/03/2011

By Jason Fittler

Where to from here?

The last three days of this week saw the market sell of rapidly with the market losing 4.5%. But, not all was bad news, the Bank of America came out with a good forecast profit early in the week and the US market was relative steady across the week.

Oil was a main concern across the globe and rightly so. An oil crisis has in the past lead to an average drop of around 20% in the financial markets.

We have seen gold once again become popular as investor look for safety in the precious metal. 

These short-term market movements are for the traders and big institutions where they are chasing small movements in the market and investing very large sums.

What does this price pull back mean for the investor?

As I have mentioned all week in my morning report, we were expecting to see the market pull back to 4680. This happened on Friday going lower to 4644, as you can still see in the above chart the market is still within our trading range so the next week will be important.

For all of those cashed up investors now is the time to start toping up holdings and buying quality blue chips paying good dividends. There are plenty around at present, no need to spend all of your available cash but make sure you get some invested.

The market will continue to move sideways for now so the yield should be your main focus right now. 

If you would like more information please call me on (07) 4771 4577.