Investors continued to defy concerns over debt levels in the United States as well as the potential easing of stimulus by the US Federal Reserve, sending the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) upwards for the seventh consecutive week last week.
The gains were predominantly recognised in the retail and energy sectors. Despite having announced a 5.9% fall in annual net profit, David Jones’s (ASX: DJS) report returned an element of confidence to the market after announcing its intention to increase online sales. Wesfarmers (ASX: WES) and Woolworths (ASX: WOW) also added 0.5% and 1.5% respectively, whilst JB Hi-Fi (ASX: JBH) appreciated an incredible 8.3%.
A number of other blue chips also pitched in to the gains, aiding the benchmark index upwards to sit at 5307.1 points at close on Friday. Westpac (ASX: WBC), ANZ (ASX: ANZ) and NAB (ASX: NAB) all finished the week in the black, whilst Telstra (ASX: TLS) hit the $5 mark for the first time since mid-August to finish at $5.02 for the week.
Whilst the index is sitting at over 5300 points, many stocks have become overpriced compared to long-term potential, however, after seven consecutive weeks of gains, it is possible that we will see investors start taking profits. which would give long-term investors a prime opportunity to buy.
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Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.