Over the past 12-months the market has gained around 460 points or 9%.
But the market has never moved in a straight line.
We have seen the low of 4650, which is 400 points down on this time last year and the current high, which happened this week of 5530 points.
The market has move above 5100 no less than 7 times this year returning back to 5100 six of those times.
From the lows of June 2013 to today’s high is a swing of around 18%.
Is the current high different or will it also fall back to 5100 points?
May is typically a tough time in the market, which normally equates to a market pull back. If we couple this with the great run the market has had since February the expectation is that we will see some sort of pull back as investors look to take some profits.
On the other hand more people are returning to investing in the market through managed funds.
We have also seen an increase in margin loans over the past 12-months. It seems more investors and advisors are now once again comfortable with gearing into the market.
I remain cautious and continue to buy companies on weakness.