predict market to come back to 4500, page-10

re: predict market to come back to 4500:bbloff Bbloff,
i think you are right that on fundamentals the market should not fall any further. The australian market is not overpriced imo when you look at the forward PE's. In addition the dividends on ZFX are looking at 43c for 2006 and 50c for 2007 that is a forward divvy of 5% or thereabouts on current prices.
The US markets on the other hand are imo overpriced. the yields they offer over there are in the 1%-2% range which in a contracting market is not in the slightest bit attractive to investors. Therefore you will get a movement to cash etc.
Here we are influenced by what happens in the US markets whether we like it or not. you may know the old saying that if new york sneezes then our market catches a cold.
It may be a few more weeks of uncertainty before we resume any positive direction imo.

regards andrewe
PS welcome to hotcopper.