What's next for the market?

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. 

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.

Important Information

The above information provides an overview or summary only and it shouldn’t be considered a comprehensive statement on any matter or relied upon as such. The above information doesn’t take into account your personal objectives, financial situation or needs. It’s important for you to consider these matters before making any financial decision and I recommend you seek help from a financial adviser.