Shareswatch Australia

Well after a few weeks of uncertainty following the federal election in Australia, the Australian Labor Party (ALP) has managed to pull together a ragged alliance and hold onto power. Some people say that a minority government will be a refreshing change and can work well, but I believe that the coalition that Julia Gillard has put together will result in few tough decisions being made and could end up damaging the Australian economy.

Strange things happen to Australian prime ministers. One (Harold Holt, 1966-67) disappeared while swimming near a Melbourne beach; speculation says he may have been eaten by a shark.

Amazingly Kevin Rudd is no longer the Prime Minister of Australia and lost his position without a single vote being cast. Does this mean the days of the Government borrowing and wasting money are over or is Julia Gillard going to be an even bigger spender than Rudd? What a week, and worst of all Wayne Swan is representing Australia at the G-20 meeting in Toronto in Canada!

Back in October 2009 the Shareswatch Random Portfolio had racked up over 25% in unrealised capital gains in just 12 months. But May 2010 was not a good one for the stock market so how is this random selection of stocks holding up after the correction?

Quite clearly the debate regarding the Resources Super Profits Tax (RSPT) in Australia and abroad has not died down. Despite what the Government would like people to believe, it is not just the foreign mining companies that are opposed to this new tax, but also small Australian mining companies, business owners and the public in general.

For more than a week investors have been watching stock markets across the globe drop sharply as concerns over debt in Europe have raised doubts in people’s minds that a global economy recovery is really taking shape. But is the current correction really that bad, and is there a chance that stocks have fallen too far, too quickly?