The big news is the US and the debt ceiling issue. This has seen the US market pull back over the past week. This issue is unlikely to be resolved in the coming week and should continue to weigh on the market.
Back home in Australia our market is a little different, as we have not seen the highs, which the S&P 500 has. As such I expect that our market will pull back on the back of the US issues but not to the same degree. Keep in mind that foreign investors make up a large part of our market and we expect that if/when they pull out of the US there will be a flow on affect for the Australian markets.
Value is still hard to find in our market at present as such holding on to spare cash is a sensible position until an opportunity presents itself.
We are starting to see the large end of town pushing up prices in some of the small caps companies, which have good long-term growth opportunities such as 1300SMILES and Green Cross Vets.
I caution people on residential property, which is currently being pushed inside of Self Managed Super Funds (SMSF).
If you do not have a SMSF already please ensure you get the right advice so you fully understand the costs and responsibilities of setting one up.
If you'd like more information please call me on (07) 4771 4577.