While the headlines screamed about billions in losses when put in perspective the local market index lost 5.4 per cent from the recent high. Over the past 3 days quite a few companies have lost ground and it remains to be seen if this correction has more in it. Let us remember that since the December 2018 low our market has put on over 1,400 points or around 27 per cent and probably needed a breather. Continuing trade wars could impact global markets more severely over the coming months or they may not, you just don’t know for sure. We took some profit on the short Index position yesterday to lock in some healthy gains.
The Vanguard Australia site has some wonderful investing tools and the graph below shows the long term returns of different assets classes after all dividends have been re-invested.
All time periods vary and the period from 2010 to 2018 was not that flash for the local share market during a time when US Shares performed above the average.
The educational portfolio was stopped out of a few shares on a short term trading basis including recent addition Altium which went through our stop level only to bounce off a lower support level.
The longer term weekly chart shows Altium making yet another higher low at close to a previous support level.
The price of Perseus shows a nice bounce up from close to a support level not long after we entered. Sometimes you get lucky.
The price of gold continues to climb with the $1,500.00 level looking closer every day and where some kind of pull back may occur as price reaches possible resistance levels, time will tell.
Qube Holdings has held up reasonably well over the past few days.
Pinnacle Investments was one of a handful of companies to make gains yesterday on the back of a decent earnings result.
The wreck of the day was Rural Funds Group which came under fire after the release of a damming report by a short seller on how the company was overvalued.
Bingo Industries was another stock to gain yesterday after previously falling for a few days.
Disclaimer: The commentary and trading positions taken are for educational purposes only and are not an invitation to trade. Trading is risky and individuals should seek Professional counsel before making any financial decisions. Many thanks to Incredible Charts.com software for most of the charts used in the column.
Monitor, measure, manage and maximise… Cheers Charlie.