Invest
Market crash ‘definitely not on the horizon’
The new Australian share market’s all-time high set last week has significant ramifications for investors who can now move forward with certainty and confidence, a chief analyst has said.
Market crash ‘definitely not on the horizon’
The new Australian share market’s all-time high set last week has significant ramifications for investors who can now move forward with certainty and confidence, a chief analyst has said.
Wealth Within’s chief analyst, Dale Gillham, said that the market’s positioning means a crash is “definitely not on the horizon at this point in time”, despite alarmists who had been “ringing the bell about a potential market crash once the All Ords pushes through its all-time”.
Mr Gillham flagged that it has been 4,284 days since the Australian share market last reached an all-time high, which last occurred on 1 November 2007.
“We need to remember this marks the longest stretch in time for the Australian market to create a new high, so breaking this milestone now means investors have more certainty and confidence, and I believe there is further upside,” he forecast.
So what will the Australian share market do now?
Now that the market is “trading in blue sky”, Mr Gillham said he believes the Australian market will trade up strongly for a few weeks with a top end target of around 7,200.
Still expecting the market to be searching for its yearly high, the financial services analyst said this will then pull back into the yearly low.
His prediction is “that the market will continue to rise through to late August or early September before falling into a low late September or October, with the decline likely to be around eight to 15 per cent from the high”.
For now, investors who are buying over the medium to longer term should expect a small dip in stocks before the end of the year, with Mr Gillham clarifying that this drop “will be short-lived”.
Where should investors be looking for opportunities?
“The best sectors for opportunities I believe will be financials, energy and materials,” according to the chief analyst.
Mr Gillham noted energy as being the best sector last week, up around 4 per cent, despite it being “the worst performer this year”, and so this may present opportunities moving forward.
He said it was “surprising” that materials was the worst-performing sector over the same period, ending slightly in the red, and harbouring the week’s top five worst performers.
For the financial sector, the chief analyst commented that while doom and gloom has surrounded the sector over the past few years, “it got a strong lift after the dust settled from the fallout of the royal commission”.
This email address is being protected from spambots. You need JavaScript enabled to view it.
About the author
About the author
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
Stock market
The 6 unique Australian market affects that all active managers can exploit
The uniqueness of the Australian equities market is providing fund managers with an opportunity to essentially beat the market, new research has revealed. ...Read more
Stock market
‘Don’t believe the hype’: ASIC warns of risks for new market participants
ASIC has expressed concern that inexperienced or uninformed investors are putting their capital at unnecessary risk when tempted into the market by questionable marketing strategies from market promot...Read more
Stock market
How do you choose the best ETFs?
In recent years, exchange-traded funds have become an increasingly popular option among Aussie investors. ...Read more
Stock market
Lockdowns instigate a rise in new investors
Despite COVID-19 leaving individuals and businesses to face an uncertain future, retail investors’ appetites for shares have increased throughout the pandemic, a new report has found. ...Read more
Stock market
‘Code red for humanity’ a wake-up call for private and public investment
Retail investors that have been advocating for sustainable and ESG investing are hoping a new report released by the United Nations will serve as a wake-up call to the financial industry and governmen...Read more
How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness
Listen now
APRA’s mortgage crackdown, the power of DeFi and last-minute tax tips
Listen now
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
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
Stock market
The 6 unique Australian market affects that all active managers can exploit
The uniqueness of the Australian equities market is providing fund managers with an opportunity to essentially beat the market, new research has revealed. ...Read more
Stock market
‘Don’t believe the hype’: ASIC warns of risks for new market participants
ASIC has expressed concern that inexperienced or uninformed investors are putting their capital at unnecessary risk when tempted into the market by questionable marketing strategies from market promot...Read more
Stock market
How do you choose the best ETFs?
In recent years, exchange-traded funds have become an increasingly popular option among Aussie investors. ...Read more
Stock market
Lockdowns instigate a rise in new investors
Despite COVID-19 leaving individuals and businesses to face an uncertain future, retail investors’ appetites for shares have increased throughout the pandemic, a new report has found. ...Read more
Stock market
‘Code red for humanity’ a wake-up call for private and public investment
Retail investors that have been advocating for sustainable and ESG investing are hoping a new report released by the United Nations will serve as a wake-up call to the financial industry and governmen...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
