The best and worst performing sectors on the ASX this week
The past few months has certainly been interesting for everyone around the world, not just politically but in terms of health and quality of lifestyle. Some of the issues have brought us closer together while others have torn us apart, but all these world events have affected our wealth, not just as a nation but as individuals.
Over many decades, we have seen the divide between the haves and the have-nots grow in many countries including Australia. Despite our country being considered wealthy, I have to question whether this is really the case. The divide between the haves and have-nots has caused significant division in countries like the US. We know Australia follows the US and while I am not suggesting we will end up like the US, we do need to address the divisions that exist in Australia right now.
We need to support Australians to create more wealth in their lives by helping and supporting our farmers, small businesses, the less fortunate, as well as young people and the elderly. While it is every individual's responsibility to create and look after their own wealth, if we truly want to be recognised as a wealthy nation, we need to provide support to all Australians from the ground up, not the top down.
Best and worst performing sectors this week
After a slow start to the year, Information Technology has taken off on the back of a strong rise in WAAX stocks including Wisetech and Afterpay with the sector up more than 7% so far. Consumer Discretionary is also up more than 3% while Communication Services is up more than 2%. The worst performing sectors include Utilities, which is just in the red followed by Financials and Energy, as both are up around 1%.
The best performers in the ASX/S&P top 100 stocks include Wisetech up more than 18% followed by Afterpay up more than 11% and Domino's Pizza up more than 10%. The worst performers include Alumina down more than 3% as is Cleanaway Waste Management followed by Vicinity Centres, Bendigo Adelaide Bank and Scentre Group, which are all down more than 2%.
What's next for the Australian sharemarket
The All Ordinaries Index has started 2021 strongly, as it is up nearly 4%, which is a good sign for what might unfold this year. That said, before you get too excited, this rise will be short-lived because as I mentioned last week, the Australian stock market is expected to fall away slightly in late January to mid-February. Therefore, it is highly likely that will see the end of the current upward move either this week or next, with the market falling away for one to three weeks into mid to late February.
In the medium to longer-term, I believe the Australian market will perform much better than it did in 2020 and it will present many good buying opportunities for those who are looking for good value stocks rather than those who like to speculate. While technology stocks and the sector are performing well right now, I believe this bubble will burst soon and the sector will not perform as well as others in 2021.