By Jason Fittler
Looks like December will get off to a bad start with the market pulling back on Friday and heading lower on Monday.
I am sure people smarter then I will have many reasons for the current dip. But, for my money I expect that the uncertainty in our market at present is about government.
So far the LNP have struggled to get the budget through and it looks unlikely this will happen in the short-term.
Small business is being hit hard with bankruptcy up. There is little confidence in the market place.
Capital expenditure is halting as everyone sits on their hands with a wait and see approach.
I expect to see weakness into the Christmas period as investors look to exit the market with a wait as see approach until the New Year. This should provide some opportunity for the value investor especially with BHP cracking through the $31.40 barrier last Friday.
I will not be surprised if the market hits 5100 nor concerned if it goes below 5000.
I do not expect we will see a GFC event as some say. But, the Australian economy will struggle for some time yet.
The good news is that the turning point is getting closer.
2015 year is shaping up to be a rather flat year for growth in our market.