I have just been looking at the top value movers for the day on comsec and it got me thinking about this thread.With many of the top value movers that hold so much weight on the asx having done placements now begining to reach there fair value or close to highs.What will the institutional investors do this commming finacial year ending.With customers who require results in both super and fund management regardless of the market there could be a run of shares hit the market with any correction downwards because of the huge gains made on placements.Now some of those placements may have reduced the income these companies can afford to pay out to shareholders.Well alot i think .Institutions who require capital in the form of cash to meet this demand and to attract new capital from the customer may choose to sell up this placement.The decision to increase the retirement age could relieve this preasure on the market if there is a correction.The liquidity in this large area of the index could be a master stroke of the goverments by way of funny money who knows.But lets hope we look back in time and wonder at the master stroke of reinflating the markets around the world by the many goverments who have injected into this.It has allowed many of us to look forward again and eat sleep with much more peace.Have we added more fuel to the fire by the way of share placements?Keeps me warm at night now knowing it has been done.Makes me wake earlier to make sure.Funny money or not its peace of mind everyone thinks of when investing.Anyone else think a correction if it comes could be a rush on this new found gain in share placements?Could it cause an overcorrection or has it already done so?And why we are looking for a correction now.With the big four sitting well placed in the world now and holding so much weight in our index.Our top miners still making close to or near record outputs thoughout the crisis in the big minerals. Demand is still there for our quarry goods.Most of the companies who needed capital in the big end of town have it now.I would maybe lay weight we will look for an increase in property values to find a drawn out correction in the market.To early to tell if thats about to occur and the money moves from the market to property.But with a sound economy if a correction starts again from overseas our market maybe will get inflated with all those foreign investors looking for a safe bet .At least it may insulate us from it somewhat.I bet the bands on shorting will get rolled out early if it looks bad. Nice thread.Happy investing or trading the markets to all.My tip! If the correction comes look for support or entries around placement levels.
