Australian All Ordinaries Index A number of clients have asked me if this is a bear market rally which can be typically described as a surge of 5% or more in the All Ordinaries Index while the overall trend appears to be sideways after a major market correction. In the attached graph you can see the performance of the US S&P500 index during the significant bear market phases of the 1930’s and the 1970’s. The data shows that US stocks boomed by more than 100% during two very long bear market periods and confirms that stocks do not necessary move sideways for years after a major market correction. If this is a bear market rally then the only real question is, will we go below the All Ordinaries Index low of 3,111 points posted on the 6th March 2009? You tell me. At Newealth we are always looking to innovate and improve our ongoing advice and services wherever possible and if you have any ideas or comments, please feel free to email me at invest@newealth.com.au or to call me on +61 2 9267 2322.
7th-April-2009 | 
