Have we said goodbye to the bears?
While there will be more ups and downs along the way, AMP's chief investment strategist Shane Oliver says that the worst of the sharemarket losses are behind us. However he warns that the journey will not be smooth and that the ASX200 index will finish the year near the 6350 points it was at in January. “Australian shares are cheap. They've had a very good run and may well have a setback in the near future as they settle down a bit and consolidate recent gains, but I think the trend from here is up,” he said. Investors should approach the market with caution according to Mr Oliver, by taking advantage of falls along the way and buying stocks when they are cheap. Hans Kunnen from Colonial First State said that he was not so confident that the bear market has ended, warning that earnings downgrades were still possible as the impact of higher interest rates hits consumer related stocks.
Source: The Daily Telegraph