Invest
All Ords set for new record by February, analyst predicts
The Australian market is likely to reach a new record in the early months of the year, with a win on the health front likely to offset geopolitical issues, an analyst has stated.

All Ords set for new record by February, analyst predicts
The Australian market is likely to reach a new record in the early months of the year, with a win on the health front likely to offset geopolitical issues, an analyst has stated.

The All Ordinaries lost 48.40 points on Monday, falling by 0.69 per cent to 6,938.40, while the ASX 200 also experienced losses, falling by 0.78 per cent to 6,663.00 points.
But, despite a slow start to the week, Wealth Within’s chief analyst, Dale Gillham, believes the Australian stock market is set to rally in early 2021, beating its previous record of 7,230 points set on 21 February 2020.
“The Australian market is strong. We have handled COVID relatively well and are getting back to work,” he said.
“Right now we are only 4 per cent away from breaking the previous all-time high set in February 2020, and overall we are seeing confidence in our market,” Mr Gillham told nestegg.
While noting that overall the Australian market is likely to benefit from strong gains, Mr Gillham predicted that sectors that underperformed in 2020 will likely be the big winners this year.
“Energy was the worst performer in 2020, with materials also subdued. Technology was by far the best sector in 2020.
“Statistics constantly prove the best performers in one year are rarely the best in the next as fund managers practice sector rotation looking for growth,” Mr Gillham said.
The analyst also predicted that the financial sector could overcome a low interest rate environment and outperform in 2021.
“I also like financials, more so the banks, as they have generally been down for over five years, while they may not break land speed records this year, I think the banks will perform much better than they have in past years.”
“Given the size of that sector in our market, if they are rising and materials are also rising, then our market will have a good year,” he explained.
Moreover, Mr Gillham pointed out that sectors that outperformed in 2020 could be sold off in 2021.
“I see profit-taking in technology stocks, and the money has to go somewhere else, with energy looking very good along with materials,” Mr Gillham said.
The chief analyst also believes that unlike overseas markets, Australia’s rally has been subdued, which could mean 2021 is a stronger year for investors.
“If you are asking about the Australian market, we are still roughly where we were this time last year, and so we are not in any overheated type of situation,” Mr Gillham said.
“For the calendar year, our market only rose 0.5 per cent, and it was really only the strong rise in November that pushed the market to a point where it could trade in positive territory. Up until November, our market was still down 5 to 6 per cent.”
While highlighting that it is an educated guess, Mr Gillham said Australia’s market could be up double digits in 2021.
“I think our market will achieve double-digit growth this year. How big the number will be really depends on the COVID situation, China and a few other factors. My guess is somewhere around 10 per cent,” he concluded.
About the author

About the author


Stock market
Markets succumb to jitters as US CPI maintains strength
Following a slight drop of 0.2 per cent in the United States inflation rate, the latest US April consumer price index (CPI) data indicating higher than expected figures has triggered a fall in the US ...Read more

Stock market
Qantas forecasts return to profitability, announces ultra-long flights
Qantas expects its net debt to condense from $5.5 billion at the end of 2021 to $4.5 billion at the end of April following a period of sustained recovery in travel demand. ...Read more

Stock market
Headwinds to outnumber tailwinds in 2022
Headwinds are likely to outnumber tailwinds in 2022 as the world continues to readjust to the post-pandemic era, one expert has said. ...Read more

Stock market
Aussies can now net frequent flyer points by trading stocks
Superhero is looking to sweeten the deal for traders who are excited for the return of international travel. ...Read more

Stock market
Facebook debuts new name
Zuck gets meta. ...Read more

Stock market
2 big questions investors should ask as Australia reopens
Investors need to stop thinking about how to profit from the mineral sector’s struggles, and start looking at when the best time to ride the recovery will be. ...Read more

Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more

Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more

Wrapping up an eventful 2021
Listen now

What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now

Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now

Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now

Stock market
Markets succumb to jitters as US CPI maintains strength
Following a slight drop of 0.2 per cent in the United States inflation rate, the latest US April consumer price index (CPI) data indicating higher than expected figures has triggered a fall in the US ...Read more

Stock market
Qantas forecasts return to profitability, announces ultra-long flights
Qantas expects its net debt to condense from $5.5 billion at the end of 2021 to $4.5 billion at the end of April following a period of sustained recovery in travel demand. ...Read more

Stock market
Headwinds to outnumber tailwinds in 2022
Headwinds are likely to outnumber tailwinds in 2022 as the world continues to readjust to the post-pandemic era, one expert has said. ...Read more

Stock market
Aussies can now net frequent flyer points by trading stocks
Superhero is looking to sweeten the deal for traders who are excited for the return of international travel. ...Read more

Stock market
Facebook debuts new name
Zuck gets meta. ...Read more

Stock market
2 big questions investors should ask as Australia reopens
Investors need to stop thinking about how to profit from the mineral sector’s struggles, and start looking at when the best time to ride the recovery will be. ...Read more

Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more

Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more