The Australian stock market is up by 7.6% in price terms this calendar year; on an annualised basis, that's almost 25%! Who said we are not in a bull market?
Having said that, there is a little bit of 'lies, dammed lies and statistics' in these numbers, as the last couple of weeks in December 2011 were a shocker, meaning the rise is coming off a very low base. However, the inescapable conclusion is that the market seems to be slowly ticking higher.
If this trend continues, how should we approach our sector allocation? Is it time to reweight, potentially, to some of the resource stocks?