Ask Colin

The Dow and the All Ords have proved much more resilient than I expected. I've been mostly out of the market for a year. At what point in time does the recent upward run (to first week of May 2001) in the Dow remain only a bear correction and not a continuation of the Bull Run - when the Dow goes to a new high?

Nobody has ever been able successfully to predict the future consistently. Bear market rallies are often very strong. However, you are right that we should re-assess if new highs are made. Whether you should have been totally out of the market is a different issue. My strategy has been to remain partially invested, but only about 30%.