Wealth Within’s Filip Tortevski and Dale Gillham discuss the panic on markets last week, analysing what happened by the charts.
“Regardless of whether the move happens over days, weeks, months – volatility is volatility whether it happens fast or slow, it will happen on our market,” Mr Tortevski said.
“The important thing is to do is to measure that volatility, and measure it relative to what’s happened in the past and the Dow Jones has been going up 20-odd, 30 per cent over the last couple of months so a fall of 5-6%, is that a crash?”
Mr Gillham agreed it was not.
“I think this week is going to be a tell-tale sign of where the market is heading and why people shouldn’t panic last week,” Mr Gillham said.
“If you’re following the herd, you’re always going the wrong way.
“The herd gets it wrong most of the time.”
In the weekly show hosted by Wealth Within’s Filip Tortevski and Dale Gillham, $3.3 billion Materials giant Downer EDI (ASX:DOW) is the ‘Hot Stock’ tip this week.
The transport, services and utilities stock closed at $4.91 on Monday.
The ‘Proceed with Caution’ stock is agricultural and industrial chemicals play Incitec Pivot (ASX:IPL) which closed at $2.93 on Monday.
And ‘Not Hot’ this week is Monodelphous Group (ASX:MND).
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
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