New market highs still years away
Equity markets might retreat in 2010 as interest rates rise globally, while the Australian share market would be unlikely to hit new highs until 2012, according to Wilson Asset Management (WAM).
An investment update from the manager said while it believes the share market would continue to move higher into the new calendar year, “as we move deeper into 2010 the picture becomes cloudier”.
“In the longer term, we would anticipate that share prices would level out in 2011 or possibly 2012 before starting a much longer and sustainable recovery,” the group’s statement to the Australian Securities Exchange said.
“History tells us that share markets take between five and seven years before they reach a new high. If we believe that November 2007 was a multi-year high, this would mean late 2012 is the earliest we could be anticipate hitting an all-time high on the Australian market,” the group said.
WAM argued stock selection would become increasingly important in coming months as market leadership narrowed to a handful of sectors.
The manager pointed to the relative weakness of banking stocks in November, with investors shifting away from what had become a relatively expensive sector. The industrial sector was also relatively weak, while resource stocks surged.
Recommended for you
Insignia Financial has returned to profit in FY25, after a $185 million loss in the previous year, while its advice division grew their revenue per adviser by 14 per cent.
With licensee switching on the rise, particularly for newer advisers, compliance expert Sean Graham has shared red flags to watch out for when making the jump between AFSLs.
Beyond their investment benefits, over a third of advisers say utilising managed accounts solutions has allowed them to take on more clients, according to Praemium.
Insignia Financial’s wrap platform has appointed Heidi Press, former HUB24 head of product management, to spearhead the design and delivery of the MLC Expand platform.
