For months now we have been watching the US for signs that they will start to ease their momentary policy.
The market is now expecting this to happen as early as December. Which is reflected in the cautious approach investors are having and accounts for the sideways move in the market.
For traders, it is important to time when this easing will start.
For long-term investors, it is important to understand that easing momentary policy will have an effect on the market.
The Australian market is looking overvalued as a whole, which means that we need to continue to be stock pickers buying those companies out of favor for whatever reason but still have strong fundamentals.
It is also time to be looking toward Europe. This market is still undervalued. Although I do not expect a quick recovery it makes sense to take an index approach to Europe. We are currently researching opportunities for long-term investment in Europe and will provide further details when available.