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That said, I’m not afraid of a scary market dive. In fact, I think the best strategy is to regularly buy into this rising market with a long-term view that share prices will creep higher over the next few years. These share price ‘creepings’ along with dividends should add up to a nice return.

Cash stash

Ideally, apart from a regular commitment to blue chip shares that have a history for paying dividends, I would recommend that you build up a nice stash of cash at the pretty good interest rates around for savers nowadays. This could be used to buy great companies oversold in any market dives or dips over 2010.

The managing director of the 30-year old listed investment company Djerriwarrh, Ross Barker, told the Sydney Morning Herald today that “the market is back in line with long-term trends”. He doesn’t think it’s cheap nor expensive — it’s classic fair value.

All of the economic readings pertaining to Australia scream out clearly that our economy should fair well over the year. That should help company profits, in turn helping dividends and share prices.

Around the globe

To overseas, and China keeps delivering which should help market leaders such as BHP Billiton and Rio Tinto, as well as leading energy and gold stocks.

Over in America, looking at the overall economic data, my gut feeling is that the Yanks will gradually improve, defying the negative types that warn of an economic as well as a market downturn.

Recently, UPS, which is a good economic bellwether in the States raised its fourth-quarter earnings forecast to 73 to 75 cents a share from the original 58 to 65 cents a share. That’s a good sign.

Over the next few weeks, major US companies will show us how they fared in the December quarter and this will drive Wall Street and other global stock markets, including our own.

Buy the dips

My television program on the Sky News Business Channel resumes on the first Monday in February and the US economic recovery will be a major focus.

If the American economy can strike back to defy the gloomy forecasters out there, then it will be a good investment year where buying the dips will make a lot of sense as well as a lot of money.

Remember - use the economic force and buy the dips!

For advice you can trust, contact Switzer Financial Services.