Whether ASX can reach 8,000 points before Christmas is the “biggest unknown”

InvestSMART’s Evan Lucas said that despite its record highs, whether the ASX 200 index will reach 8,000 points before Christmas, as some have predicted, is still the “biggest unknown”. “This will definitely happen someday in the future, whether it is the end of this year, but it may be a huge unknown,” he said. “I point this out because we have actually risen by about 11.5% so far this year. ASX reached 8,000 points, which is another 10% drop from our current level. “Sometimes we forget when we talk about the index. , It is a collection of all companies listed on ASX 200 or All Ords all over the country as a whole. “And obviously the bigger they are, the greater their percentage of the index. So, the direct example is CBA. “CBA accounts for 8% to 9% of the ASX 200. In order for ASX to get the required 10%, it needs to grow by about 15% in six months. “Although they may be the best at it and do very, very well, they certainly haven’t seen the 15% increase that we saw from 2013 to 2015.”

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About the Author: Agnes Zang