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A solid start to 2012
The bad news on Europe has dried up, the US economy has continued to recover and investors believe the soft patch for Asia will be only temporary.
As a result, global sharemarkets rose in the March quarter. While Australia under-performed, investors in small or medium-sized stocks wouldn’t have been disappointed.
CommSec is sticking with its conservative call for the ASX 200 to reach 4,450 by mid year and 4,650 by end year. But if domestic investors start to put high cash balances to work more quickly than we expect, and the bad news on Europe stays away, then stocks will clearly be headed for more solid gains.
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