Expect share market to rise for Christmas
The Australian share market could rise into Christmas and beyond, while the upcoming US presidential election could mean more volatility, according to Wealth Within’s Dale Gillham.
Gillham, chief analyst at the firm, said the market was “not looking strong” currently in anticipation of the election but he felt any falls would be “short-lived”.
The much-anticipated election between President Donald Trump and Democratic nominee Joe Biden would take place on 3 November but it was not yet known when a result would be announced, leaving markets in an uncertain position.
Since the start of the year, the ASX 200 had lost 9% overall but it had risen 32% since the bottom of the market downturn in mid-March.
“Since the end of May, the Australian market has risen just under 5% and is not looking strong, which may be due to the Presidential election being in its final stages, as the world waits for the outcome before deciding what the markets will do,” Gillham said.
“Given the strength of the down move this week, the probability of further falls is likely, although I believe any fall will be short lived. While I am still of the opinion that our market will rise into Christmas and beyond, given the current volatility it is important to remain cautious, as anything could occur. Right now, it is wise to sit and wait for the dust to settle on the Trump-Biden election but at the same time get ready for the opportunities that will unfold in the not too distant future.”
The best-performing sectors over the past week had been consumer staples, the only sector to report positive returns, while energy and materials stocks had suffered.
Performance of ASX 200 since the start of the year to 30 October
AUTHOR
Laura Dew
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