Shareswatch Australia

Now that the major stock markets around the world are falling the Australian media have become obsessed with the concept of a “two speed economy”. I am not sure who first started using this term, maybe it was the gurus at the Treasury or the Reserve Bank, but in my view there is no such thing as a two speed economy. The situation we have now is that the economy has simply been mismanaged.

Trying to forecast where technology may lead us is relatively easy compared to determining where to invest in order take advantages of these technological trends. Some companies that may appear ideally suited to do well in the future may actually find technology works against them and some sectors that appear “hot”  might actually turn out to be quite unprofitable.

It seems the Australian government is in the mood to throw money around in order to try and lessen the impact of the recession, but one option that does not seem to have been raised is for the government to establish another sovereign wealth fund. This new fund could act as means of supporting the stock market and provide a source of income over future years to maintain spending on such things as national infrastructure and healthcare.