The ASX is on the way up today, but it’s by no means been smooth sailing.
Local investors enjoyed a strong relief rally early in today’s session, watching the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) rise more than 1.6% to 4,998 points. The optimism soon faded away before returning once again with the ASX 200 sitting 1.4% higher around lunchtime.
BHP Billiton Limited (ASX: BHP) has managed to regain favour with investors after Glencore’s shares recovered some of their losses in London overnight. BHP’s shares are up 1.5% around lunchtime with Rio Tinto Limited (ASX: RIO), Fortescue Metals Group Limited (ASX: FMG) and Woodside Petroleum Limited (ASX: WPL) also up 2.6%, 5.1% and 2.4%, respectively.
Commonwealth Bank of Australia (ASX: CBA) is also providing plenty of drive. The bank’s shares rose 3.1%, making it the top performing Big Four bank. Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd. (ASX: NAB) were up 1.8% and 2% while Westpac Banking Corp (ASX: WBC) lagged behind with a 1.3% jump.
Although today’s gains are certainly a welcome relief for investors, the reality is that investors simply don’t know what to think right now. One day, the market falls almost 4% on the back of global economic concerns, and the next, it surges higher for no solid reason. The high level of volatility is playing with investors’ emotions and many are likely considering getting out in case of further falls.
That feeling is a natural human instinct, and one that has caused many individuals to lose out on their investments when times get tough. Although I won’t claim to know what’s going to happen to the market tomorrow, next week, or even next year, I do know that the high levels of volatility experienced recently are not normal, and that investors need to simply wait out the turbulence for better days.
Sitting on your hands and doing absolutely nothing may be the best decision you could make right now.
Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading over 40% off its high, all while offering a fully franked dividend yield over 3%...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.
The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.