The Australian Share Market (ASX) moved 3.77% higher over the March quarter with the S&P/ASX 200 Index finishing at 5,879 points, relative to the December quarter close of 5,665 points.
Shares now remain vulnerable to a short term pull back as investor sentiment towards them is very bullish and a lot of good news has already been factored in which has left them vulnerable to any bad news.
But putting short term uncertainties aside, with valuations remaining okay, global monetary conditions remaining easy and profits improving on the back of stronger global growth, we continue to see any pullback in shares as an opportunity to “buy the dips”. Shares are likely to trend higher on a 6-12 month horizon.
With the Australian share market having broken decisively above the 5800 level, it now looks like it’s on its way to a retest of the March/April 2015 intraday highs of just below 6000.
To keep you up to date with the latest economic developments please see the attached AMP Capital Market Update which addresses these areas in more detail.
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