all ord xao will correct to 5000 support, page-7

Is this a correction or a crash?

I my way of thinking it is a correction, however I am conservative.

For example, one gets 7.5% interest at the bank so a bank share should pay a little more in dividends.

2008 7.75% gross dividend from ANZ for example = $27 share price target.

8% dividend from ANZ for example = $26 share price target.

I think as interest rates rise investors should revise their share price targets.

Apart from that, the market has some excellent value at the moment, with some stocks on very low PERs and paying very high yields (AZC, CUO, BKN, UXC, CND, AFG, for example) which indicates an irrational crash due to mass psychology is occuring now rather than a rational correction due to overvaluation.

At 5000, many shares simply become too attractive, which is why it will not get there.

Good profits results this February should see some improvement and a further move from the ASX away from the DOW.