There's a downtrend going on Down Under

AUSTRALIA is rarely free from disaster, be it extreme temperatures, bushfires, or yet another prime minister. But, for many Singaporean investors, it has been an attractive property and market destination. However, 2018 saw Australian man-made disasters extending to the property and stock markets.

The Australian S&P ASX 200 index entered an extreme downtrend in September with a 14 per cent plunge to close 7 per cent below its January 2018 open. This slide continued in the first trading days on 2019. Current investors need to decide if the buy-and-hold approach remains appropriate for 2019 when even the most optimistic analysts are pitching 6,000, up from 5,500, as a 2019 bullish target. New investors need to decide if the current fall represents a buying opportunity prior to a new uptrend.

Consistent behaviour