The Australian market is looking like pretty good buying at this point, though I don't see any need to rush in. I would suspect some more weakness in commodity based stocks, but I think we will see a flow of money back into banking, insurance and retail stocks. Sure commodity prices are looking a little weaker, but as far as the economy is concerned the economy is still generating large amounts of cash, and the contribution of the farm sector will kick in. I would suggest one of the biggest factors helping to hold up the market will be the huge amounts of investment in gas, iron ore, coal, coal seam methane projects in WA, NT, NSW and Qld. All this new capacity means Australia will be well positioned for the next decade, and the investment will help lift demand in the short term. The market will likely consolidate around this level for some time.---------------------------------------------
Andrew Sheldon www.sheldonthinks.com





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