Market Wrap - Week Ending Friday 15th August 2008

By Jason Fittler

On page 31 of the Townsville Bulletin on the 14/08/2008 you would have read the latest prediction from our very own Daniel Goulding. Is he predicting that the market has another down leg yet which could see it fall another 13%?  For the full story download PDF.

Now before everyone looks for the nearest window, what does this really mean for investors?  You must always take these predictions in context with your own investing style. If you do not know your style then you need to speak with your adviser.

Let’s have a quick review of investor’s types.

For the really aggressive investors who will take big risks, you would look to short the market with a view to buy back in on the dip. Keep in mind aggressive investors need to act quickly and keep a close eye on the market.

For the more balanced investor you may wish to take some profits on stocks or look to insure your portfolio through the use of options. Keep in mind that the income your portfolio produces is expected to stay the same and we expect that this will be a short term fluctuation.

For the conservative investor you should look to hold your position as most of your investments should already be in good long term stocks.

Keep in mind that this is a market fluctuation not the end of the world.

If you are concerned give us a call (07) 4771 4577