Thought I would pen together a quick email to update you on where the markets are sitting, my views on what I believe will be happening and the stocks I have/looking to gain exposure in.
I believe we are starting to see the top of the market and a small pull back is upon us. The XJO has had two strong negative days and I think we should see the index head toward 5300 over the next month or so. I still believe we will see the markets rally from June onwards and this pull back will be a great opportunity to enter the markets with a view through to the years end and beyond. There is plenty of money sitting on the sidelines with massive fund managers and superannuation providers. There is talk that a shift from bonds (only returning 2.56% on 10 year US Treasury notes ) into the equity markets will bring a whole new wave of buying momentum. I have a target locally of the ASX200 reaching 6000 by the years end.
High yielding stocks are paying investors dividends upwards of 5-6% (TLS, WPL, NAB etc.) alone on local soil and some stocks in the US yielding upwards of 8% in strong, well performing companies such as Seadrill Ltd. (10.47%) and High yielding ETFs . I think it is a great time to look into getting into some safe, high yielding stocks that have a good management team behind them and are looking to grow. I especially like the look of Woolworths (WOW.asx) on the local market. The stock has broken the $37.00 level convincingly, come back and is looking to use this level as a support before we see a rally higher from these levels. Coinciding with the 50 day moving average, a key rising trend line and the stock bouncing from the 38.2 Fibonacci retracement, I think we will see a move higher from these levels.
These stocks will drive our market higher, return investors with great dividends and have a good chance of seeing capital growth in the medium to long term. It’s a great time to be looking to build on your current portfolio or begin to build one with the support of BBY Limited and myself. With access to the best local stock and sector research, 24/7 trading desk support and execution services, access to daily reports, market wraps and trade ideas, do yourself a favour and find out how we can structure a strategy to suit your investment style and risk appetite.
There are both the online (more do it yourself with access to most features) and full service broking options (complete full service broking option that allows you to build a strong portfolio with a hand to hold) available. For a conservative Covered Call writing or High Yielding option strategy that may suit your SMSF or personal trading goals with a long term outlook please ask as this is an area that is extremely important to remain in control of (Now that we are all going to work until we are 70!).
Please contact me if you are interested in knowing about the stocks both locally and internationally that I have invested in myself and have the majority of my clients gaining exposure in.
Clients, please feel free to ask me any questions you may have.
LP
Pilkington Trading 