The market continues to pull back, although it did find a little life on Thursday.
We are starting to get some profit downgrades coming through, especially in the retail sector. Anyone surprised of downgrades in retail profits has just not been paying attention.
We continue to hear all that is needed is confidence. Do not be fooled by these political slogans. The issue at present is that there is little certainty in the political leadership.
Carbon Tax is still an issue along with Red Tape and FOFA rules. It seems that the changes we need to have passed will not happen in the current environment as such confidence is simply not there for business.
What this means for investors is that opportunity for the value investor is becoming more available.
Myer came out with a downgrade this week and the price has pulled back to historic lows of $2.00 per share. This makes Myer good buying for those who have a long-term view.
Sure in a week, a month or a year Myer may still be down, but as the economy recovers retail will pick up and Myer will be a shining light in your portfolio. Much like the banks in 2010 and Telstra in 2011.