Australia, as an investment destination, suffers from an increase in risk perceptions. Foreign capital is less willing to invest here, or buy debt issued by the banks to fund the mortgages of Aussie battlers. As a result, the Aussie dollar falls. However, the ‘magic’ of a falling dollar is that it increases the purchasing power of foreign currency.
Specialty Fashion Group Ltd [ASX:SFH] see’s further retails success, with a recent share value increase of 28.89%
I have no idea how long the next bull or bear market will last. But I’m confident that future bull runs will last far longer than bear markets. This is really what it’s all about — learning from the past to make better decisions in the present.
February has seen a $60 billion fall in the Australian stock market. Every sector has been affected, and it’s hard to tell what's in store for the ASX.
Yesterday’s sharp fall below support at 6,000 points (and back to where we were three or 10 years ago) suggests a certain malaise in our economy. Australia has deep seated problems that go well beyond a one-day stock market panic. Let me explain.
The Dow Jones dropped 1,175 points on Monday — the largest single-day point drop in history —erasing all profits made so far this year. The 4.6% decline is the biggest percentage loss the Dow has suffered since 2011, when we saw a drop of 1,089 points on 24 August.
The divide between the generations is real. And although starting off has never been easy — and it’s not meant to be easy — it’s still fair to say no generation has had to start off at such a disadvantage when it comes to buying a roof over your head.
Overnight, the main US indices all traded higher. No one really knows why. But stocks are going up, and people just want to buy them before they go up even more. It certainly feels like a crowd mentality on Wall Street right now. The bulls are clearly in control.
Australians, individually and collectively, have bet everything on housing. And every year, we double down on that bet. There’s no certainty that 2018 will be the year our housing gamble goes bust. But it would be madness to be certain that it can’t. Aussie property investors in Australia could be in for a rough year.
Just because rates have been at records lows doesn’t mean they can’t go any lower. For one, there’s the Aussie property market to think about. However, by looking at what the big banks are doing, we can glean what the RBA is likely to do in the future.