Market Wrap Friday 18/03/2011

Still inside the trading range!

By Jason Fittler

Fear grabbed hold and gave it a good shake this week. The markets took a tumble as the situation in Japan continued to get worse.

We also have problems in the Middle East, carbon tax at home on top of a cyclone, flood, and small earth quake in far North Queensland.

Add to this a government which can not function to the point that a minority party is dictating their policy, increasing interest rates, water rates, electricity prices and employment. The average Australian is not sure what to think.  With this sort of uncertainty worldwide it’s no surprise the markets lost ground.

The big question - Will they continue to fall?

Truth is no one knows.  I personally find it hard to believe that we will see a strong recovery over the next couple of weeks or months.

However, the facts are that quality Australian companies are going cheap.

In Stock Spotlight this week I talk about CPA, this is a property trust trading 20% below its current net value. Keep in mind that this company owns real buildings, take a long term view and this company is great value right now.

I am a cautious buyer in these times and will look to reduce my exposure to cash.

For more information please call me on (07) 4771 4577.