The Market Wrap 13-9-13

By Jason Fittler,

This week the ASX 200 reached the all time high since the GFC hit.

As you can see in the below chart this level was seen in March 2013 before a pull back.

Is it different this time?

Has the change of government caused a change in investor outlook?

If you a trader, the answer to these questions matter. (For the record, I am not a trader.)

If you are a long-term investor then you are already in the market and as such have benefited from this positive move.

The question is, “What to do with the spare cash in your account?”

The majority of companies in the ASX 200 look fully valued of overvalued.

The undervalued company is rare at present. This does not mean that the market has to pull back, markets move on sentiment in the short-term but return to fundamental valuations over the long-term. 

The majority of my money is invested in the market and I am holding cash as a precaution.

Patience is the super power of the long-term investor.

A change of government has injected a sugar rush into business confidence, but the implementation of policy will take time as will economic change.

Unemployment is up and America is still pumping money into their economy.

I remain cautious looking for opportunity.