Market Wrap Friday 21/01/2011

Market trying to move higher!
By Jason Fittler

Last week we were left wondering if the market would continue to move up. As you can see below, we breached the 4800 barrier on Wednesday but have fallen back below towards the end of the week.

There is little lead out for the US and gauging from market chatter still a lot of concern around about Europe.

What we know is that the US economy is starting to move while China is reaching peak construction capacity.

Australia has been hit by floods, which have re-focused the activities for many Australians. In these markets you need to take a long-term view, short-term focus does not allow you to see the full picture.

Now is a good time to accumulate large quality stocks with high dividend yields.

Chicken Little is still running around calling a drop in the market. Given that the market has risen 14% in the last 7 months any punter would make this call.

However, we are not punters; we take a long-term strategic view on the market.

Any pull back is an opportunity to buy more and get the surplus cash into the market.

If you would like more information please contact me on 07 4771 4577.