Another week of political grandstanding.
While the media looked to beat up the story about the US debt ceiling issue, the market was clear that a resolution would be found. (24-hours before the announcement was made the market headed back up.)
What this clearly indicates is that the market moves ahead of the media.
Listening and acting on information provided by the media will generally only cost you money.
The good news is that the US spending issues have now been highlighted and monetary easing is getting closer.
Our market continues to look over brought as cash investors chase better yields than the cash rate. This makes it difficult to find value at the current levels.
As an investor you need to be careful and not fall into the trap of thinking you are missing out. You need to understand that as money flows into the large fund managers they have limited options and as such they tend to push that money into the market.
I believe that this is the main push behind the rising share market. And when monetary easing starts in the US it will cause the market to correct back to or below fundamental valuations.
When looking for opportunities, I continue to be cautious and slow.