REVIEW YOUR POSITIONS
May 21st, 2010 by
Closing Data
| Current | Change | % | |
|---|---|---|---|
| Dow Jones | 10,068.01 | -376.36 | -3.6% |
| NASDAQ | 2,204.01 | -94.36 | -4.1% |
| S P 500 | 1,071.59 | -43.46 | -3.9% |
| FTSE 100 | 5,073.13 | -84.95 | -1.6% |
| Nikkei 225 | 10,030.31 | -156.53 | -1.5% |
| ASX 200 | 4,316.50 | -70.6 | -1.6% |
| COMEX Gold - Dec 09 | 1,187.60 | -5.5 | -0.5% |
| COMEX Silver - Sep 09 | 17.93 | -0.185 | -1.0% |
| COMEX Copper - Sep 09 | 298.55 | 2.6 | 0.9% |
| WTI Spot | 68.01 | -1.86 | -2.7% |
| AUD-USD | 0.8177 | -0.0299 | -3.5% |
| Aluminium | 1,947.00 | -22 | -1.1% |
| Copper | 6,500.00 | 34.5 | 0.5% |
| Lead | 1,720.00 | -1 | -0.1% |
| Nickel | 21,050.00 | -5 | -0.0% |
| Tin | 17,110.00 | 5 | 0.0% |
| Zinc | 1,817.50 | -5 | -0.3% |
Europe’s debt crisis coupled with a risk of slowdown in China have pushed global equity markets lower. US stocks stumbled pushing the Dow lower with industrials and materials leading the decline. The Dow Jones Industrial Average fell 376.36 points, or 3.6 per cent, to 10,068.01, the measure's biggest point drop since February 10, 2009, and largest percentage drop since March 5, 2009. The Dow is now at its lowest point since February 10 of this year, and is in negative territory for the year, down 3.45 per cent.
The Australian dollar has fallen as much as 12.4% over the past four weeks, raising speculation the Reserve Bank of Australia could intervene to help stabilise the currency. The Australian dollar was trading at US82.17 cents by 6am AEST, having fallen as low as US81.53c in the New York session.
Adding to the panic in the market, Gold Futures which investors typically flee to in times of uncertainity, settled down 0.4 percent at $US1,188.60 an ounce. Much of the selling of gold has been to raise cash to meet margin calls in other markets.
The SPI is trading down 106 points or 2.46% to 4211, our market is likely to test 4200 today. For clients with margin it is important that you contact your adviser to discuss purchasing PUTs as a means of “freeing” up funds within the portfolio.
It is important for clients to assess their positions in the current market. Overseas financial markets are trading on fear at the moment and all fundamentals have been ignored. It is therefore impossible to predict what is going to happen or where the markets will settle. Those clients with borrowings against their portfolio need to be harsh in their thinking and ensure they are protected against an irrational market. There are three choices, sell your stocks and hold cash, ride it out if you have the capacity, or take protection in the form of puts.
Please ensure you think about your positions and contact your adviser to discuss your options.
Contact your Freeman Fox Stockbroker on 07 3031 9960 or 1800 003 369 Ext 7.
Disclaimer
The material in “Market Fox” (newsletter) is of a general nature only and neither purports nor is intended to be regarded as advice. No consideration has been given or will be given to your investment objectives, financial situation or needs. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk. Not all risks can be or will be explained in the newsletter. Previous results are no indication of future results. Actual results achieved in the market can vary considerably. The Directors and Representatives of Freeman Fox Ltd and their associates may hold securities in the companies presented.
The research made available in this newsletter is for your private use only and it is protected by applicable copyright laws and other applicable intellectual property right laws. You may not reproduce, distribute, disseminate, broadcast, sell, publish, circulate or give for free, any of the materials made available to you in this newsletter without first seeking the prior written consent of Freeman Fox Ltd.
Freeman Fox Ltd is not required to update any of the content made available in this newsletter, including but not limited to any research commentary, forecasts, recommendations or other analysis in this newsletter. Therefore, for the avoidance of any doubt, material made available in this newsletter may not be accurate after the date of publication or the date on which it is displayed in the newsletter.
To the extent permitted by law, Freeman Fox Ltd and their respective directors, officers, employees, contractors and agents disclaim all responsibility to you for any loss, liability, claim, expense (including but not limited to legal costs and resultant defence or settlement costs) or damage whatsoever, whether direct, consequential, special, incidental, punitive or indirect (including but not limited to loss of profits, trading losses and damages that result from delay, loss or inconvenience) arising out of or in connection with the content of the newsletter and/or any omissions from the content whether in contract, tort (including negligence), statute or otherwise and even if Freeman Fox Ltd has been advised of the possibility of such damage or loss.
If you require assistance in relation to your personal investment situation, contact an authorised representative of Freeman Fox Ltd.