What's next for the market?

by Andrew Newman
in Investing
4 Jun 2009 | 0 Comments

Speculation has increased that the fall of the world's share markets, which began in November 2007, may finally be at an end - particularly after the US's S&P 500 Index reported its best month in 9 years in April, gaining 9.4%.

The value of $100 invested in Australian shares has risen as much in the past 2 months as it did in the whole of 2005, (as shown below by the range of the red lines) and is above where it started the year.

ASX/S&P 200 Accumulation Index

What's next? Only time will tell. Though we do know that investors with a longer-term mindset now have the opportunity to pick up stocks at substantial discounts to their historic valuation. Careful analysis is still necessary but could be very rewarding.

The above article has been sourced from FIL Investment Management (Australia) Limited.

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The information provided is general in nature and does not constitute financial advice. While we have taken reasonable care in providing this information, it should not be construed as being specific to your investment objectives, financial situation or particular needs. It's important for you to consider these matters before making any financial decision and we recommend you seek financial advice.

What's next for the market?

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