Market Wrap 18-11-11

By Jason Fittler

I maybe away but I am keeping a close eye on the market.

As expected the market has started to pull back. Many advisers would have been mistaken that the announcement of measures to fix the European debt crisis would have been the start of the recovery. Clearly they do not remember their history. Back in 2008 when the announcement came to advise how the GFC was to be fixed the market bounced before dropping again to test the lows. 

The catch is we do not know the extent of who will be affected by the measures brought in to solve the European debt crisis. Many large fund and even some Australian councils have exposure to these bonds.

As this news flows through the markets investors once again look for safety.  Not me… I am taking this as an opportunity to add to your portfolio.

We still expect that the market will get back towards 4100 which is great buying for the long-term investor.

At the risk of sounding like a broken record, now is the time to buy the blue chips paying a high dividend yield and hold for the long term.

This will provide you with income around 8% and above average growth over the next 3 – 5 years.