A new record has been broken. The ALL ORDINARIES (INDEXASX: XAO) has hit a fresh new all-time high of over 7,000 points for the first time in history. The new high was hit just after 11am this morning after soaring relief at the seeming de-escalation of Iran–US tensions overnight.
The S&P/ASX 200 (INDEXASX: XJO) is also trading at new highs over 6,880 points, although without the dramatic 'psychological breakthrough level' that the All Ords has hit.
What does this mean for your ASX shares?
Well, if you're already significantly invested in ASX shares, this is probably very good news. ASX shares are up across the board today. There have been gains (at the time of writing) from the famous blue-chips like Commonwealth Bank of Australia (ASX: CBA) (up 1.09% today to $81.78) and BHP Group Ltd (ASX: BHP) (up 1.48% to $40.16).
CSL Limited (ASX: CSL) is also benefitting from the improved sentiment. CSL shares are up 1.68% at $290.65.
Joining them has been ASX growth stocks like Afterpay Ltd (ASX: APT) (up 2.72% to $30.90) and Pro Medicus Ltd (ASX: PME) (up an eye-watering 7.58% to $23.98).
The only losers today seem to be ASX gold miners (surprise surprise). The ramp-down of tensions has pushed the gold price sharply lower from the US$1,600 per ounce level we saw yesterday. Gold is now going for US$1,562 per ounce.
Northern Star Resources Ltd (ASX: NST) is leading the losers currently, with NST shares 3.61% lower at $11.76.
Where to for ASX shares from here?
Well, that's the billion-dollar question. It seems that as long as things stay at a cooler level on the international stage (which is far from certain with President Trump), it's just business as usual with the markets.
Loose monetary policy, low interest rates and a reasonably healthy (if not spectacularly so) economy all point to favourable investing conditions. Of course, we've just come off a record year of stock market gains, so I still think 2020 should be a year of 'investing with caution'. Markets are notoriously and inevitably cyclical, after all, and what goes up must eventually come down.
Foolish takeaway
So as the All Ords books a record high, I don't think it's too late to invest. I'm still looking for great companies and buying for the long-term, but keeping some cash on the side for that inevitable rainy day.
