What Does 2011 Hold in Store for Traders?

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The Australian Stock Investment Group believes that 2011 will be a strong year for the Australian Share Market, with analysts forecasting gains of about 18% for the year.

According to analysts at Kinetic Securities, an ASIGroup affiliated broker, 2010 is poised to go down as the third best full year gain in earnings. While this doesn’t mean that 2011 will follow suit, it is a good indicator of things to come. It would be hard to believe that Australia could go from the third best year of earnings and straight into no earnings growth, especially when the economy is now starting to move forward with decent GDP numbers.

In 2010, resource stocks crowned the share market investment return tables, and all of the 20 biggest gainers amongst the All Ords were part of the mining and energy industries. This year, analysts anticipate a similar story, with resources and materials stocks expected to continue to dominate. This is in line with forecasts of solid economic growth in Asia translating to a strong demand for commodities.

Analysts at Kinetic Securities feel the important thing to remember is that fundamentals like earnings and economic growth, as seen in the resource sector last year, drive markets in the long term. Sentiment and news drives it in the short term. So, the way to make money is to get in line with the fundamental direction, then use the periods of negative sentiment to enter the market or add to positions.

The ASIGroup is an Australian owned company that provides information and research for some of Australia's leading Stock Brokerage Firms, financial information providers and general trading advisors. These companies are located throughout Australia's capital cities and are widely considered the best services available in Australia today. The ASIGroup provides information on all types of Stock Market Trading including Shares, CFD’s, Futures, Futures and Options.

Marketing Manager
The ASIGroup
61 7 5562 9100

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