Market Wrap Friday 10-06-11

By Jason Fittler

What would a betting man do in this market?

My colleague Daniel Goulding picked the recent market fall back to 4500. Daniel is the author of The Sexton Report, he is a technical analyst. Technical analysis trades the market trend.

He is now expecting the market to move back up in the short term. As such now is a good time to look at a short term trade. If you are interested in chasing some short term trading ideas I recommend The Sexton Report. I would also recommend options to limit your down side.

At the current levels I am chasing stocks trading below their intrinsic value and paying a good dividend yield. The big four banks meet this criteria.

I see these dips as a long term buying opportunity with the view to build a long term portfolio of quality business which will provide you with long term growth and income.

We are currently in the process of putting together a model portfolio which will provide clients short term income and long term growth.

In a post GFC market if you want to be a successful investor you need to change the way you invest. Chasing short term growth in this market is very close to gambling.

You need to start looking to buy businesses instead of renting shares.

Over the coming months we will show you how.

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