ASX's bullish start to 2020
This first month of 2020 is a little different to normal, as it marks the start of a new decade and often brings with it new opportunities - although this isn’t always the case.
With that in mind, let me ask you: do you want this decade to be like the last or do you want it to be bigger, better and more fantastic? The difference as to how it turns out will really come down to you.
Over the Christmas break I find it’s good to take time out to refresh and reflect on the year gone by, but more importantly to plan for the next year.
During the break, I allocated more time to catch up on some reading, as it really fuels your mind, motivation and inspiration. Would it surprise you to know that all successful people don’t just read novels to entertain themselves, they read books that educate, inform, and challenge their thinking?
One of the books I was reading reminded me that 90% of the time people go through life on autopilot by doing the same thing over and over again. So, it’s no wonder that most people move through life every year feeling like they are in the movie Groundhog Day.
It may also surprise you to know that most of what we do every day is done using our subconscious mind 90% of the time. So if you are moving through life on autopilot, you will continue to achieve the same results you always have.
The problem with this is that most of us desire more, (more freedom, more options and less stress in our lives) but very few are prepared to put in the work to make this happen. That’s because living on autopilot is easy. This also means we sacrifice what could be an amazing life full of abundance for one of mediocrities.
Every week I receive emails from people wanting to be successful, whether it’s with their trading or general wealth creation. They all desire to be high achievers so they can enjoy the rewards that being a high achiever brings. Yet, many of those I interact with stay in their comfort zone and continue to run on autopilot even though the path to success has been laid out for them.
You can't be a great investor or trader if you are always looking in the rear view mirror at all of your mistakes, weaknesses and failings. Remember, we can’t change the past, but we can change today, so we achieve our future goals.
Becoming a high achiever at anything requires you to commit to the goals that are going to lead you to your destination. And being a high achiever requires you to get out of your comfort zone and do what you need to do. Some of you will find this challenging or uncomfortable at times but it is worth the effort.
So rather than run on autopilot, make January 2020 the perfect time to set your goals for the coming decade so you can live the life of your choosing rather than experiencing Groundhog Day.
So what can we expect in the Australian share market?
The run up on the market into Christmas was quite subdued and not at all how I expected the year to end with the All Ordinaries Index closing down by around 2% during December. In fact, if you found your portfolio did not do well in the second half of 2019, then you would not be surprised to learn that the market has only risen around 1.5% in the last six months.
But everything changed this week with the All Ordinaries Index rising strongly to achieve a new all-time high with the market rising nearly 3% so far this month. As I alluded to prior to Christmas, the market is bullish and the All Ordinaries Index will rise in January and beyond.
Right now, we can expect the market to continue to rise over the next three to four weeks with the next peak likely to occur in mid-February at around 7,200 points or above. I am confident that our market will rise during the first half of this calendar year with my target set at around 7600 points.
Dale Gillham is Chief Analyst at Wealth Within and international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in bookstores and online at www.wealthwithin.com.au