The market continues to surprise.
This goes against all the media reports which last week that were telling us to be brave and sell out of the big blue chip companies.
If we pause for a monument and look how the market has performed since the start of this year we have an outstanding result.
Our market opened this year at 5410 points and is now trading at 5969 points. This is growth of 559 points or 10.3%. If we annualise this, it is a return of 48% pa.
Of course, it will not continue on this growth path for the full year. But it does indicate that with interest rates low, unemployment high, oil and iron ore prices off, exchange rate at $0.75 and a Government which is struggling with a hostile senate that investors are once again prepared to take on the risk for the reward.
It seems that the fear from the GFC is now in the past and the fear of being left behind has kicked in.
Company results are mixed, but we are seeing improvements.
The volatility is still in the market however; over the past month, we have seen support continue.
We are also seeing strong support for IPOs indicating that there is still money waiting on the sideline to get into the market.