ASX to rise again; Dow enters bull marketDow Jones closed at...

ASX to rise again; Dow enters bull market

Dow Jones closed at 22552 and it is up more than 20% from its recent lowest close of 18,592 on 23rd March. The bull market has started again technically speaking. This has to be one of the shortest bear markets in the history of stock markets. It lasted for only 12 sessions. This recent crash tells us a lot about the crowd mentality. This is how the crowd reacts when they rush to the exit door in panic. A child can ride a roller coaster in a theme park but you need to have nerves of steel to ride the stock market roller coaster.

ASX200 lowest close was 4,546 on 23rd March and a close above 5,455 will put ASX 200 back into bull market territory. ASX200 closed at 5,113 yesterday so technically speaking, ASX200 is 342 points away from the start of the next bull market. SPI futures are at 5,302 and it appears to me that it will be a ripper Day number 4 today. Reminds me of watching Day 4 of a Test match. Its appears to me that ASX200 will put on roughly 250 to 300 point rally today and inch closer towards the 5,455 close in next few days of March. Super funds and institutional investors have only 3 days left to re-balance their portfolio for the March quarter.

Situation in Italy is getting better slowly as number of new cases and deaths have been slowing down for 4 days in a row now. A few key things that are happening in our world and in our economies. The population of the world was around 6.9 billion in 2009 and in just 11 years it has gone up to 7.8 billion. Demand has been growing due to population growth and supply is not able to keep up with the demand. One million dollars in year 2000 was worth twice more than one million dollars today. What do you do when you see population growth and value of money decreasing due to inflation? You do not hoard cash in term deposits. You need to invest your cash into assets by buying land, property, gold, shares, collectibles etc to protect your capital from devaluation over period of time. Around once every 10 years, holding cash will sound like a wise decision but then you are getting it wrong 9 out of 10 times.

WBC lowest close was $14.10 on 23rd March and a close above $16.92 (highly likely today) will raise green flags for those who love their technical analysis and charts. No need to say much to the pessimists and doomsayers. They will keep posting nonsense comments about WBC for a while. Give it time and you will see that all those naysayers will start crawling back under their rocks as WBC share price will continue to recover slowly and steadily. The market will shut them up for us. We need to stay calm and ride this wave up as we rode the wave down over the past 3-4 weeks. WBC just traded at $17.15 on NZX.