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One of Australia's leading market analysts, Rod North, says that by the end of the 2018 calendar year the market will return to the all-time high of 6,800 points.
Back in April last year, North said the All Ords would hit 6,000 points by the end of 2017. On 7th November North was proven right when the All Ords finally reached 6,000 points it had been nearly 10 years since it reached this level.
The last time the Australian market reached the 6,800 level was in 2007 right before the global financial crisis in 2009 when it plunged back down to 3,109.
North says 2018 will be a huge year for the big end of town, who will thrive with the backdrop of a strong global economy.
"Stocks like BHP and RIO will be making a big comeback to assist and drive the All Ords higher. It is these types of stocks that will outperform the index."
"Bank stocks have had their day in the sun and with a spate of recent reporting being disappointing due to earnings pressure on this sector, it puts them into a neutral position for 2018," says North.
"Expect more M & A and takeover activity in 2018 as companies look to grow earnings strategically with a solid global backdrop," says North.
Future technologies like AI are still wildly popular in 2018, with North saying to look out specifically for certain companies.
In terms of retail, North says major players need to get their act together this year or they'll disappear completely.
"If you don't innovate and reinvent your business with a strong customer service focus it's going to be light out. With Amazon turning up the heat in Australia, forcing consumers to buy the same item online that can be found in the high streets and major shopping centres, I don't need to leave my home at all."
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