The Market Wrap 21-11-14

By Jason Fittler

The market bottomed at least short-term last Friday and moved higher at the start of this week.

The big news was the Medibank float, which was never going to be a big bang on opening but instead a long-term investment. 

The government has priced this right with retail buyers up some 5% since it opened.  While institutions paid $2.15 which is just over the current price.

The real news at present is about Australia trying to get back on track. The government is doing all it can with the structure it currently has. 

The free trade agreement with China went pretty much under the radar this week as everyone banged on about cuts to the ABC.

Companies continue to work hard in a tough economic environment, which will not get any easier in the near-term. 

This has a volatile effect on the market. Investors are losing long-term focus for the short-term and are unclear where to put their money. 

For the long-term investor stay the course and continue to buy undervalued companies and hold for the long term.

Short-term trading or rapid change of investment strategies will hurt you in this type of market, as it is too volatile.

Our economy is making progress. But it is painfully slow. We will just need to suck it up for now.