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.

Well today the stock market correction that I mentioned was coming in February has certainly hit and the ASX All Ordinaries Index has fallen below the 5000 level yet again.  Is this latest share market correction something Australian stock market investors should worry about, or is it simply an over-reaction to global events which will have little long term impact on stocks and shares?

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 current downturn in the world markets presents us with an opportunity to review or develop our investment strategy for the next few years. For some people it may mean a major overhaul such as moving from stocks to real estate, while for others it may mean just a realignment of stocks in a portfolio.

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.

Sometimes when confronted by a seemingly endless barrage of economic data it is beneficial to just grab a cup of coffee and calmly review a few stock market related charts to see if they are trying to tell us something. Yes it is pretty chaotic in the global economy these days but believe it or not, some order appears to be creeping back into the Australian stock market.