On the 14 March 2003 the Australian Small Ords Index closed at 1388.1 and then the market started it's upward run to peak at 4098.1 on the 2nd Novemember 2008, not far off tripling in value.
Then the index proceeded to give back most of the gains in a little over a year. There was plenty of warning. The drop was not as fast as in 1987.
The Small Ords only has to give up another 195 points and it's back at where it was at in 2003. The Small ords is down 61% from it's peak a year ago, whilst the All Ords is around 50% down.
I have been looking at fundamentals lately. I am tempted to push some super money into some high yielding "blue chips". So far I have resisted the urge, dimly aware of my poor ability to pick winners through fundamental analysis. For me the numbers don't give the full picture.
stevo
Note: The S&P/ASX Small Ordinaries index is comprised of companies included in the S&P/ASX 300 index, but not in the S&P/ASX 100 index. It ignores the top 100 stocks and gives a view of the smaller cap stocks on the Australian market. It is a favourite index of mine.
2 comments:
Hi Stevo,
I agree...it's tempting with all those high yielders around. Think if you do pick winners at this cost base what the relative yield will be in 20 years time when you're retired!
Oh so tempting.
ASX.G
With cash rates falling, identifying companies with sustainable high yields is increasingly appealing, if I only knew how to do it. Have started to construct a checklist for the purpose. Other participants welcome.
Peter H
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