Morning Report Monday 17 August 2015
If a Market does not Fall on Bad News, it’s Likely to Rally!
Investing/trading usually produces the best results when “Keeping It Simple Stupid” (KISS) e.g. A company increasing its profitability is likely to outperform a company struggling with contracting profits, or even experiencing losses. A great example of this within the ASX200 over the last 12 months is Santos (STO) -27%, compared to Domino’s Pizza (DMP) up +63%. Unfortunately this also applies to individual country indices, as we have recently witnessed in Australia with our struggling economy offering no relative assistance to the local share market – The ASX200 is up 42% from its 2011 lows, while the S&P500 is up 95%, over double during the same period. There are a number of tools available to investors, including the often discussed fundamental and technical analysis, but common sense is one often ignored. Over recent months the US share market has literally had everything except the kitchen sink thrown at it but it remains only 2% below its 2015 and all-time highs.
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