Experience tells us that significant deviations from value always mean revert which implies that Australian listed companies need to either deliver a substantial increase in earnings/profits to justify current and further share price increases over the comming months or there needs to be a price drop (aka as a correction or crash).
At Newealth we follow the investment philosophy of Graham and Buffett which recommends against speculation but if earnings do not come through then you could be presented with an opportunity to buy more quality assets at a reasonable or better still discounted price.
