(< 1 min read time)

I was asked the question the other day about whether with an up and down January, is the market headed for a correction or a continued bull market?

I would recommend reading the January edition of "Oliver's Insights" (3-4 minute read time) from Dr Shane Oliver, Head of Investment Strategy & Chief Economist at AMP Capital - click here to view the report.

The Key Points in summary:

  • Expect more volatility in shares as earnings take over as the key driver and the US Fed moves to further taper it monetary stimulus (aka printing less money)
  • However, the cyclical bull market in shares is expected to continue as global monetary policy (aka official interest rates) is likely to remain easy (aka low) and we are still not seeing the investor euphoria that goes with market tops
  • Since 1950 the average cyclical bull market in Australia lasted 48 months with a 126% gain, with the current going for 28 months and 37% gains.
  • "When share investing becomes a common topic at barbeques and in taxi rides I will get more concerned!" - Dr Shane Oliver

Have a great month.


Ben Law.