The Market Wrap 22-2-13

 By Jason Fittler

This week the market broke above 5000 points. Thursday was a drop of 2%. Friday the market rallied but was unable to claw back all of the losses from the previous day.

This is the third time since the GFC that the market has moved beyond the 5000 point market, but is the highest it has been.

The question is what to buy in this market.

All of the big blue chips are now trading close to or above their fair value. 

We are starting to see some of the smaller high yielding companies start to have good runs.

One of my long-term buys Southern Cross Media was 19.5% just this week, this appears to me at that the yield hungry cash investors are now looking at the next level of yielding companies.

The new NAB Preference share offer came out this week with NAB having to increase the offer from $750 million to $1.4 billion to keep pace with the strong demand for income.

Do not be in a rush to enter this market. This looks like a short-term rally, so keep looking for good opportunities and be comfortable being overweight in cash.