The Market Wrap 13-3-09

By Jason Fittler

Have we seen the bottom?

Finding the bottom is of little relevance. What is clear about this market is that we are in a Bear market, this means that you can no longer simply sit on stocks and watch them go up. In a Bear market if you want to make year on year gains you need to be active.

This does not mean that you have to become a day trader but you do need to be comfortable buying stocks and holding them for a short term gain. (Short term being 12 months) Simply sitting and waiting is now a long term activity. There are many stocks in your portfolio which are of a high quality which will not move for the coming 3 – 5 years.

Not all stocks are bouncing back, so for those of you who want to make the most of this market it is time to bring in extra cash or start selling out those stocks which are not going to provide any up side in the next 12 months and start buying into stocks that are.

A Bear market requires activity if you are going to beat the market or start recouping your losses. For our clients you will see us become more active, you will see us looking to take short term gains while they are on the table, we will be looking to squeeze every cent out of this market to make sure that we outperform.

This is not a time to be with a discount broker, this is a time to be active and be getting the right information.

Need help? Call us at ABN AMRO Morgans Townsville, 07 4771 4577.