The Motley Fool

Leading fund manager says the ASX share market bull run may not have peaked

Fund manager Ben Griffiths from Eley Griffiths has said that the share market may not yet have peaked despite the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) being down 6.5% this month.

In an article for Livewire he pointed out that the US share market fell due to several factors, mainly the US 10-year bond rates increasing up to 3.24% on the back of strong US payroll data.

Mr Griffiths believes the recent correction could be short-lived, saying “The correction unfolding currently should be viewed as corrective within a maturing bull market rather than a topping market reacting to valuation excess and systemic issues.”

He said that his investment firm believes volatility is here to stay in the short-term, but “There is little to dissuade us from our constructive view of equities”.

I like his positive way of thinking. Over the long run most ‘corrections’ don’t usually turn into full-on bear markets. It should be expected that the market will occasionally fall by 5% or so in a month. It will also go up 5% or more in a month as well occasionally.

The ASX 200 may be down over the past month, but over the past two years it’s up 9.2% not including dividends.

That’s the thing with share markets – they have this funny habit of going up over time. Look how far CSL Limited (ASX: CSL) has come over the past 10 years. In another 10 years it’s likely to be a much bigger business.

Investment bank Macquarie Group Ltd (ASX: MQG) is another that you would expect is going to be significantly bigger in a decade from now.

Foolish takeaway

Whilst it’s hard to say if one particular country or region will be growing strongly in a decade from now I believe the global share market, which we can access through Vanguard MSCI Index International Shares ETF (ASX: VGS), will be materially higher – even with higher interest rates.

We just have to be patient and remain invested in quality businesses.

One of these three quality shares is exactly the one I want to own whether the market has peaked or not.

3 Quality ASX Shares To Beat The Market

For many, blue chip stocks mean stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool’s in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool’s Top 3 Blue Chip Stocks for 2018."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand – and how quickly the share prices of these companies moves – we may be forced to remove this report.

Click here to claim your free report.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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 Scott Phillips.

FREE REPORT: Five Cheap and Good Stocks to Buy now…

Our Motley Fool experts have FREE report, detailing 5 dirt cheap shares that you can buy today.

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 near a 52-week low all while offering a 2.7% fully franked yield…

Plus 3 more cheap bets that could position you to profit over the next 12 months!

See for yourself now. Simply click 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.