Bad news from Europe; their elections once again showed how investors are still nervous about the markets and a threat of another GFC.
We have seen a pull back in the Australian and major markets across the world. Our market managed to stay around the 4300 level.
The Budget seems to have had little effect on the marketplace for the week although I note it did drop the most on Wednesday the day after the Budget was announced.
I am still positive on our market but it’s not going to be a straight line back up.
I see fair value for the market around 4700 and expect that we will see the market above 4500 in the near future.
As predicted previously I expect Greece will fall out of the Euro and this could be the next big news. Although this has been flagged extensively over the past 12-months I suspect that the media have now only just started to listen.
Picking the high and lows of the market is always done in hindsight, as such I will continue to buy quality blue chip companies when they are undervalued for long term growth and income.
There are still plenty of good opportunities on the market for the long-term investor as long as you can see through all of the noise around Europe.
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