Shareswatch Australia

At the start of last year I did not update my Australian stock market trends simply because I thought the market was basically going nowhere. This year however I feel it is worth looking at some interesting sectors again in an attempt to pick out some areas where investors might be able to find bargains and position themselves for the next bull market.

In the midst this stock market turmoil there may be some battered down stocks which present the opportunity for investors to buy shares in quality companies at bargain prices. Three Australian companies that might fall into that category are Qantas Airways, Telstra Corporation and Onesteel Limited.

Often finance writers comment that the investment world has changed since the Global Financial Crisis sent stock markets around the world tumbling in 2008 and 2009.  Maybe that is true or maybe it’s just that investors stopped paying attention to the risks and focused too much on the possible profits? In any case, it’s time to think about what might happen in the next 5 years or so and contemplate making some changes to my Australian stock market investment strategy.

Another year, another decade and time once again to look at our shares portfolio and perhaps review our positions. Although the global financial crisis has been tough for investors the fact is that the Australian stock market did bounce back in 2009 and if history is any guide then we are likely to see it finish higher in 2010.

The Australian stock market has finally rallied back up to where I believed the bear market bottom was last year but although this is a positive sign, the Australian economy faces a number of challenges in the years ahead and these might well make it difficult for the market to surge ahead in 2010 and beyond.

The ASX All Ordinaries Index has rallied around 40% since hitting a low in March this year and so investors are starting to wonder if a market correction is on the way. The simple answer is yes, because the fact is there is always some form of stock market correction just around the corner.

The last few months have been more kind to Australian stock market investors however I have mainly been on the hunt for stock bargains rather than in selling mode. Therefore since May this year my focus has been on trying to buy some small parcels of shares in companies that I feel will do well over the next few years rather than profit taking.

It was just a few months ago that I was reading about how the financial markets were on the verge of imploding and that gold was the best place to put our hard earned moment. But here we are in July and the global financial system is still alive, stocks are rallying and it is looking like the next bull market might be under way.

The one sure thing about a bear market is that it provides fertile ground for the rise of investment myths and for people talking up certain assets classes by feeding on the fear of investors. But before you leap into some new investment it is probably a good idea to be aware of some of the common shares related investment traps, tricks and myths that exist.

Since the beginning of May the Australian stock market has basically moved sideways and at present there is no clear trend in place.  Eventually a trend will emerge so the question is:  will the Australian share market rally or move down over the next six months or so.

Well another financial year is drawing to a close and for most stock market investors the last 12 months have not been very kind. But it is now time to contemplate how the next financial year may unfold and think about any opportunities or threats we may face as investors.

Without doubt the 2008-2009 bear market has been savage and most investors have seen their investment portfolios take a battering.  This year has been particularly unnerving as the Australian stock market looked like it may fall below 3000 just some weeks ago and we were heading for levels not seen since the last bear market.  But just as all bull markets come to an end so do bear markets, and so I cannot help wondering if the rally since the lows of March (Ides of March?) mean we are already in the next bull market phase?

It seems the Australian government is in the mood to throw money around in order to try and lessen the impact of the recession, but one option that does not seem to have been raised is for the government to establish another sovereign wealth fund. This new fund could act as means of supporting the stock market and provide a source of income over future years to maintain spending on such things as national infrastructure and healthcare.

So far in 2009 the Australian stock market has basically moved sideways with little movement that would suggest that the 4000 level will soon be breached. However this might actually be a positive sign and could signal that finally a bottom in the stock market is forming.

Recently a lot of coverage has been given in the media and on various websites about the news that apparently Warren Buffet is buying U.S stocks again. It has been reported that the worlds most successful investor recently said  “A simple rule dictates my buying: be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors.”

As I write today the ASX 200 Index is down around 3-4% and I would guess that most people now have seen around 30-60% slashed from the value of their stock portfolios. For many of us this has put us in the red and for some unlucky investors probably wiped out their portfolios.