Equity markets have experienced a strong rally through the Christmas period, led by the US market which is at all-time highs.
Closer to home, the Australian market (ASX 200) is sitting at its 12 month high, and has managed to achieve +7% return for the calendar year. While the NZ market (NZX 50) has lagged of late, it managed to end the year with a 9% gain.
The gains across local markets seems to be quite broad based, with shares rallying across sectors. Further, there has been some recent demand for bond proxy stocks, such as consumer staples, telecommunications and property stocks. While it is early to make judgement, it may indicate investors are once again being attracted towards dividend/income yield investments.
Given the strong move higher in markets, we would be hesitant in broadly buying stocks at the current juncture. and would not be surprised to see some consolidation in markets.
Markets appear to be focussed only on the...
Stock Markets, Simplified.