A long-time Australian sharemarket analyst believes the ASX All Ordinaries index could surpass 7000 points for the first time.
On Wednesday, the index was sitting at 6866 points, which is only just below the all-time high of 6873, achieved just before the global financial crisis sent it plummeting to a low of 3109 points over the next two years.
Rod North, founder and Managing Director of Bourse Communications, who was written three financial books and worked in the industry for three decades, believes the index could hit the never-before-seen 7000 mark.
“There is enough anecdotal evidence to suggest that the All Ords now has the best chance to surpass the previous record market high and then move higher over the remainder of 2019 and into 2020,” he said.
“The one thing that market history does tell us is that after every boom and bust the market has always worked its way back to its previous high and then surpassed it. This has occurred over every cycle except the one we are in now.
Since the GFC the market has slowly risen to its current level but still sits just below the all-time high.
“We are now in the ‘boom phase’ of the investment clock, meaning that the seeds of the recovery are now sown and given rising and sustainable earnings, share prices will rise as unemployment falls, commodities prices continue to increase, overseas reserves are rebuilt and property investment remains an attractive investment opportunity given gains achieved from sharemarket investment,” North said.
This content does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.
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