Shareswatch Australia

So far 2011 has not been a good year for the Australian stock market despite the ASX All Ordinaries  & S&P/ASX 200 flirting with the 5000 points level earlier in the year.  Over recent months the market has fallen back into bear market territory so a review at this stage of some 52 week stock price highs & low may give us an insight into how the market is tracking.

We are almost through a third of 2011 and the mood across global markets appears to be decidedly downbeat.  The bullish voices of late 2010 have now faded and even the Reserve Bank of Australia and Federal Treasurer are sounding cautious. But don’t be fooled by the talk that recent events have caused the global economy to face headwinds because the reality is that 2011 was always going to be a tough year.

Quite clearly the debate regarding the Resources Super Profits Tax (RSPT) in Australia and abroad has not died down. Despite what the Government would like people to believe, it is not just the foreign mining companies that are opposed to this new tax, but also small Australian mining companies, business owners and the public in general.

Despite howls of  “it’s a sucker’s rally” from some market commentators, Australian stocks have gradually pushed up since bottoming out earlier in the year. While nobody can say for sure what will happen over the next few months a look at the gold price and some stock market charts can at least tell us what is happening now.

Since April the Random Portfolio has continued to slowly rise in value but has yet to remain in the black for an extended period of time. However there are a number of stocks in the portfolio which have performed extremely well and these prove that even in the worst of bear markets,  money can still be made from investing in stocks.

Back in January the Shareswatch Random Portfolio was in bad shape, but in just a few months it has bounced back and is now showing signs of life. If global stock markets continue to crawl up off the turf we may even see the portfolio post gains before the end of this financial year and if so, this may be a good indication that the Australian stock market is recovering.

Our daily dose of business news appears universally bad, the global economy seems to be in a free fall and yet many investors are looking for signs of life and a stock market rally. Is it possible the next bull market could start in 2009, and could we see the Australian stock market stage a significant recovery this year?

January 2009 update on the Shareswatch Random Portfolio.  So far this portfolio is not doing well and is under-performing the ASX 200, however it is early days yet and some stocks may get a boost from government spending aimed at boosting the economy.

Few precious metals stir the emotions of investors quite as much as gold. But just as it stirs emotions, it also causes many people to forget about the basics of investing and plunge into gold seeking their fortune, only to suffer losses and heartache. Currently there is a lot of focus on gold as it is seen as a good asset to hold in times of trouble, so now seems like a good time to have a look at what drives gold prices and other gold market fundamentals.

Like many other investors I spend countless hours doing research before picking stocks to invest in. Ratios are checked, annual reports read, sector reports studied and yet like everyone else I have seen some of my most beloved stocks cut down by 30% or more. (some by more than 50%)

Here are some easy to understand investment tips that may help you put together an investment strategy. These tips or guidelines are by no means the only factors you should consider when making investment decisions, but they may help you avoid costly mistakes.