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S&P/ASX 200 falls as broker predicts it will hit 6000 points in 2016

The S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) is trading lower for the third consecutive day today after what was another off-night for global equity markets.

In the United States, the tech-heavy NASDAQ index fell 1.5% and the Dow Jones retreated 0.4% while the FTSE 100 and DAX fell 0.1% and 0.8% respectively in Europe. The ASX 200 is trading 0.8% lower as at the time of writing.

However, it’s not for lack of trying by the resources companies which are making a big push today following a period of heavy selling pressure. BHP Billiton Limited’s (ASX: BHP) share price is again trading 2.5% higher at $17.58, while Rio Tinto Limited (ASX: RIO) is at $43.50, up 3.5%. Fortescue Metals Group Limited (ASX: FMG) shares have also risen 2.2%.

Their efforts were not replicated by the banks, all of which are trading more than 1% lower for the day so far. Commonwealth Bank of Australia (ASX: CBA) is the biggest casualty, losing 1.6%, while National Australia Bank Ltd. (ASX: NAB), Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group (ASX: ANZ) are down 1.5%, 1.2% and 1.1%, respectively.

Meanwhile, Telstra Corporation Ltd’s (ASX: TLS) share price has fallen 0.8% and Wesfarmers Ltd (ASX: WES) shares are down 0.5%.

As confronting as it can be to watch your wealth decline, these off-periods can actually open up fantastic buying opportunities for long-term investors willing to get their feet wet. As it stands, the ASX 200 is sitting at just 5053 points but Credit Suisse thinks it will hit 6000 by December 2016, according to The Australian Financial Review.

In my opinion, a number of shares are looking reasonably priced right now and could help generate solid returns for investors over the coming years. You just need to know where to find them…

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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.

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