Market Wrap - Week Ending Friday 3rd August 07

By Jason Fittler

Another, very interesting week on the Australian market.

This week has seen the markets fall below 6000 and for many stocks into a fair value range. Is it all over? In our opinion no. I would expect to see the market fall further from here. But this is not the important question; the real question is what you should be doing. At present I am looking at the market as two halves, those stocks which represents fair value now and those which I would suspect to fall further. At present I feel that stocks such as ANZ, Westpac, Woolworths, Wesfarmers, MFS Limited, Fosters, Macquarie Media and Suncorp represent good value. I am happy to start buying into these stocks or top up existing holdings.

I am however still holding off on buying the resources sector and the investment banks, I expect that these shares will lead the market lower providing an opportunity to buy these big blue chips at discounted values. Right now if you have spare cash you should be looking to hedge your bets and start investing some of these funds into the market.

Please read Daniels latest technical analysis of where he thinks the markets are going. The Closing Bell -  Fri 3rd August  2007
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