The Market Wrap 14-2-14

By Jason Fittler

Unemployment is 6% according to the figures out his week. But this is not the complete truth.

Hours worked are down and have been for years which means household incomes are down and times are tough. And I expect getting tougher.

On the flip side... As a whole, business is running more streamline, which should assist in improving profits.

It would seem that the banks and Telstra have improved their bottom line with good results out this week. This has pushed their share prices higher. Telstra had an increase in dividend, which makes it attractive to trend chasers.

Our market closed up this week at an impressive 5356.

The trend chasers are all over the market pushing it up and chasing the yield. As a value investor, this makes it harder to find stocks worth buying.

However, we have found some good value stocks, which have not moved with the market. These stocks provide opportunity for long-term profits and higher gross yields along the way.

We will be writing to clients next week with some opportunities. 

We are still cautious on the market and expect midterm weakness heading towards June.