Shareswatch Australia

As the end of the year approaches it is time once again to contemplate how stocks may perform over the next 12 months. There are plenty of views around of course that range from the super bearish (i.e. there will be another stock market crash) to super bullish, (i.e. markets will surge to dizzying new heights) but I will steer clear of both extremes. So at the risk of being very wrong, very soon, let me now underwhelm you with my outlook for the Australian share market in 2010.

Both the ASX All Ordinaries and S&P/ASX 200 have been basically moving sideways now since September and although the market may seem to be drifting, it is actually reflecting fairly accurately the state of the Australian economy. For despite what some finance journalists seem to believe, the Australian economy will not be able to surge ahead simply because the Chinese are stimulating their domestic economy.

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.