Australian Investment Blog

Patience grasshopper, opportunities will present themselves We are holding large levels of cash at present but while equities have reached our targeted area from back in February we are not particularly bearish at present. The US S&P500 continues to chop around after its 16.6% appreciation since the China concerns waned in February and we continue to believe this correction has further to unfold prior to a strong rally to fresh all-time highs. If we are correct the ASX200 is likely to also chop around for another few weeks before surprising many and advancing through the 5400 resistance area - a close under 5200 would negate this positive outlook. We are currently holding 46% of our portfolio in cash, certainly at aggressive levels but that was always the plan when the ASX200 reached the 5400 area. Clearly we are on the lookout for good risk / reward buying opportunities of quality companies that we like. The current stock volatility is huge and likely to present such an opening for the patient. Yesterday for example we saw AMP -5.3% and Cochlear -4.8% - investors simply need to be ready to bounce.
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