It was another solid week on the markets.
As companies start to report, the results have been as expected or better.
We can put this down to companies providing good guidance on their results this year.
The market closed up at 5640, which is a new high since the lows of 2009.
Keep in mind that the market topped at 2800 back in 2007 just before the GFC hit. I would say we are in good stead to see the market continue to move back to the 6800 levels in the next couple of years.
This time two years ago the market was sitting at 3900 providing a gain of 1700 points or gain of around 20% pa over the past 2 years.
I do not expect to see the market continue at this rate. But for it to reach 6800 in the next three years the market only needs to put on 6.8% per annum, which is well within normal return ranges.
We expect the market will remain steady as investors continue to look for opportunities and invest for yield.