Australian Investment Blog

Good morning everyone as we say goodbye to 2015 Overview The ASX200 has so far rallied 9 out of 9 days for a very impressive 409 point / 8.3% gain........who had no faith in the Christmas rally? - see charts 1 & 2. With the Dow falling 117 points overnight it may be too much for 10 out of 10 but with today's ½ day trading being the end of the month, quarter and calendar year anything is possible! Turning to the Markets Looking at the S&P500, it is still ~3% below both its all-time and 2015 high - see charts 2a & 2b. Market Matters continues to believe that the US markets will see one final high in coming weeks before entering a significant correction phase. Following on from yesterday’s report, “the dates of the December highs since the GFC are 31st, 23rd, 12th, 28th, 31st and 30th so it's going to be another 30th or 31st for 2015”; so in keeping with the possibility that yesterday might have been ‘the high’ we recommended lightening some exposure to the market. We will now be watching the market very carefully. · Yesterday Market Matters recommending cutting 50% of Ansell positions around $21.60,