Apr 03 2009
Aussie Shares Suffer From March Madness
What a wild ride we had on the Australian stock market in March. Share prices went on from the doldrums at the beginning of March to stage a dramatic recovery by the end of the month.
The All Ordinaries share price index started off the month of March at 3,283.40. In just over a week it reached an intra-day low of 3,090.80 points then staged an impressive turnaround to finish the month at 3,532.30. This is a gain of just under 8% from the beginning of the month and an even better 14% from the low point.
I’ve already mentioned several times that I suspect that this is a bear market rally. This is probably good for traders looking for short term gains. However, until there is more stability in world economies, I don’t think we will see a sustained recovery in the stock market.
On another note, it seems that I missed the boat with McMillan Shakespeare. I was hoping the price might drop down to around $2.00 and then I’d buy some. However, the share price has since shot up towards $3.00. While this doesn’t look terribly expensive, there are a number of other larger, lower risk companies trading on more attractive valuations which are probably better investments right now.
