The Market Wrap Friday 21-8-09

By Jason Fittler

The market looks to have turned.

Last week the market started to show signs of stress as it turned down on the back of concerns of weakness in the retail sector, continuing problems with the US housing market and companies reporting that they are expecting subdued outlooks over the coming year.

This reporting season is 40% about the results and 60% about the out look. At present we have seen results mostly in line with expectations and a few surprises to the up side, however the commentary on the economic outlook has not been so positive.

Where to from here? I would expect to see the market get weaker in the coming months as September and October are normally weak. I am not expecting to see the market re-test its lows, I am looking for the market to get back around the 4000 mark.

This is a time to start looking at those companies which are undervalued and buy with a long term time frame.