All Ordinaries, What Is It?

by Jason Fittler

Quite often you hear reporters talk about the All Ordinaries going up or cash down, over the weekend you would have heard a lot about the All Ordinaries having the biggest one day fall in 6 years. But what does this mean, how is it calculated and what does this mean to you.

The all ordinaries is used to track how the overall market has performed. They do this by tracking the movements of the top 500 companies to determine if more companies went up in price or down in price, from this data they are able to establish, how, on average the market has performed.

How does this help you, it allows you to quickly know if your investments have made money on any one day or lost money. Overall, it’s one of many indicators we use to track the market. In isolation it is an interesting fact but combined with a number of  indicators it allows us to determine what and when we should be looking to buy shares for your portfolio.

The obvious exception to the above rule is if of course you are invested in an index fund, in that case it will tell exactly how well your investments have performed on any one day.

If you would like to know more about how a financial plan can help you contact us on 4771 4577.