Market Wrap - Week Ending Friday 4th April 2008

Last week there was a great quote from Ben Bernanke the US Federal Reserve chairman who announced, “That a recession was possible.” The market has only been saying this for the past 3 months, but we can take heart that the market did not react to this comment. We can also be comfortable since the start of this new quarter both our market and the US has shown a positive result with our market moving back through the 5500 barrier and back into our trading range.

Do not expect to see the market rush back to its former high, instead expect to see the market consolidate and bump along in the below trading range over the coming quarter as investors wait to see company earning reports for the full financial year.

We expect that the periods of high growth and wild earnings growth predictions are long gone and we will move back to the sensible approach; sustainable earnings and dividends will drive the price of individual shares.

The events of last week do provide a signal that perhaps the worst is behind us and we can start to get back into the market with more confidence.
Until next week.