Next Investors logo grey

Support is needed to bridge the wealth divide

Published 22-JAN-2021 15:23 P.M.


3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.

Click Here to View Latest Articles

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. However, once certainty for allis that 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 in many countries grow, including Australia. Despite our country being considered wealthy, I have to question if this is really the case.

The divide between the haves and have-nots has caused significant division in countries like the US, a divisiveness we have watched play out on television in recent months.

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.

So what are the 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 over 7 per cent so far. Consumer Discretionary is also up over 3 per cent while Communication Services is up over 2 per cent. The worst performing sectors include Utilities, which is just in the red followed by Financials and Energy, as both are up around 1 per cent.

The best performers in the ASX/S&P top 100 stocks include Wisetech up over 18 per cent followed by Afterpay up over 11 per cent and Domino’s Pizza up over 10 per cent. The worst performers include Alumina down over 3 per cent as is Cleanaway Waste Management followed by Vicinity Centres, Bendigo Adelaide Bank and Scentre Group, which are all down over 2 per cent.

So what's next for the Australian share market?

The All Ordinaries Index has started 2021 strongly, as it is up nearly 4 per cent, 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 we 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 Australia 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.

Dale Gillham is Chief Analyst at Wealth Within and international bestselling author of How to Beat the Managed Funds by 20%. He is also author of the award winning book Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in all good book stores and online at

General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.