When we take a look at the below chart the GFC now simply looks like the correction we had to have.
Over the longer term, being the last 10 years, the market has had a 67% return.
To put that in perspective, if you had $300,000 in super in 2003 you now have $500,000… if you stuck to your investment strategy.
If however, you panicked in 2008/2009, and went to cash you most likely have less.
The point is long-term, the market will return to fair value. As such, buying good quality companies at a discount or value investing requires a steady hand and confidence in your investment decisions.
Last week the market moved up on what was a sugar rush around the expected change in governments.
Investors need to be careful how they read this move, as it will be short-term.
Our economy will take time to get back into gear, as such under-employment and un-employments will continue for some time no matter how low the interest rates.
In this market we continue to look for value in under priced stocks and take profits where available.
The internals are indicating that caution is still to the downside.
The Bulls are not back yet.