Morning Report Tuesday 23 June 2015
Recently we have seen incredible volatility from a number of world indices and individual stocks, but the Dow remains unchanged after 7 months of sideways action. Firstly, let’s look at a few world indices:
1. China – The Index has rallied 60% in 2015 into this months high prior to falling 13.5% in a few days.2. German DAX - The Index rallied 26% in 2015 into a recent high prior to falling 12.9% in a few weeks.3. Australian ASX200 - The Index rallied 10.8% in 2015 into this months high prior to falling 9.1% in a few weeks.
We have no idea what the catalyst will be but continue to believe that the US stock market will soon experience some volatility similar to its piers – see chart 1.Yesterday, the Australian market must have read the “Market Matters Weekend Report” as it produced significant volaitility in 3 major stocks, reiterating our belief that the days of buy / hold and forget are truly behind us. While we are not advocating aggressive trading to make brokers rich the openmindness to sell is looking very important going forward. Either of the the below 3 holdings would have clearly hurt a portfolio’s performance.
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