Why some financial ratios should be taken with a pinch of salt…

The start of a new year is normally filled with plenty of optimism for the future as everyone returns to work. This year, however, has started off to a very bumpy start. In the 131-year history of the Australian share market, only five times has the month of January been a final top to a major sell-off: these were in 1901, 1906, 1953, 1973 and most recently, in 2000. We will have wait to see if 2016 will fall into this grouping, or if it is merely a ‘New Year’s Eve hangover’ waiting to be shaken off.

Investing, SharesSeptember Design Studio1 January 2014financial planning, ajfinancialplanning, alexjamieson