Another Record Breaking Week for the ASX


Perhaps there is such a thing as divine intervention.  Earlier last week Prime Minister John Howard and his Environment Minister Malcolm Turnbull both encouraged the population to pray for rain.  It took a few days, but eventually it came.  It’s good for the garden and good for our grey water tank which we imagine is still no more than a quarter full.

Last week saw another record breaking week on the Australian stock market.  The All Ordinaries added another 1% to take it to a close on Friday of 6,187.20.  The index is still a reasonable distance from the 7,000 point mark, needing to add 13% in order to get there.

Even so, with the spate of private equity buy-outs and interest in the Australian dollar from overseas investors, plus the ever burgeoning influx of superannuation dollars, a rise of 13% over the next eight months is far from improbable.

Records are tumbling on Wall Street too.  As of Friday’s close the Dow Jones Industrial Average had climbed by 2.8% to be within a sniff of reaching 13,000 points for the first time.  US market commentators are as bullish as Australian market commentators, during CNBC’s ‘On The Markets’ show, one of the participants, a Mr. Ned Riley from Riley Asset Management, put forward the prospect that the Dow Jones would reach 18,000 points by 2010, a rise of nearly 40% from Friday’s close.

Kris Sayce
The Daily Reckoning Australia

Kris Sayce
Kris Sayce, dubbed the ‘Jeremy Clarkson of Australian finance’, began as a London finance broker specialising in small-cap stock analysis on London’s Alternative Investment Market (AIM). Kris then spent several years at one of Australia's leading wealth management firms. A fully accredited advisor in shares, options, warrants and foreign-exchange investments, Kris was instrumental in helping to establish the Australian version of the Daily Reckoning e-newsletter in 2005. He is currently the Publisher, Investment Director and Editor in Chief of Australia's most outspoken financial news service — Money Morning.

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