Market Wrap - Week Ending Friday 14th March 2008

By Jason Fittler

As you can see on the below chart, last week tested the lows of January and at present it seems to be holding up. The $200 million injection of funds by the Feds in the US did help this cause a little.

The positive side of the week is two fold, we saw the Financials hit a bottom and start to rebound along with the Utilities and materials sectors. This is a positive; it’s a good indication that investors are calling the market too cheap and will buy at these prices.

I don’t rule out further down movements, but with a long term view I do feel that now is a great time to start buying into the financials and Utilities. The materials sector is still a bit volatile for my liking and I would like to see the Iron Ore contracts completed and Oil come off a little before I start buying into this sector.

I am not expecting a quick recover, a key point of any recovery is earnings.  I expect the market to wait and see the end of June results before confidence comes back into the market.

Until next week.