The Market Wrap 24-10-14

By Jason Fittler

The market continues to recover this week putting on 141 points or 2.6%.

From the lows of 5155 two weeks ago the market has put on 297 points or 5.8%

I hope everyone took the opportunity to get some cash in the market. 

There is always some sort of crisis happening and this week we are looking at the European banks of which 1 in 5 have fail the stress test.

This does not mean that they will fall over but if we were to have another GFC they will need government support.

At present the European governments cannot give support.

The US has stopped printing money and it is now time for the US economy to stand on its own two feet.

Remember though that the US market has been above it’s all time Pre GFC highs for some time now so a pull back is not unexpected.

We are also expecting to see interest rates start to increase in the US.

What this mean for Australia and our market. A pull back in the US could see funds flow out of Australia but there is still plenty of cash waiting to get into the market.

Mining companies are moving back to the new norm as far as exports and our economy is starting to bottom.

I have no expectation that unemployment will improve in the near term and interest rates will move up.

I am still a net buyer.