Comments on: Australian stocks indicate the economy is still struggling.

By: Greg Atkinson

Greg Atkinson — Wed, 14 Oct 2009 22:33:21 +0000

Anon – I reckon you are probably right about the tech sector, sadly we don’t really have one in Australia though.

Dan – I also read a lot of reports from the U.S. that don’t make me feel particularly optimistic about the prospects for significant growth there for a while. Yes the U.S. economy might not be contracting as fast as before, but people are still losing their jobs and it is going to be extremely hard for the economy to pick up enough to re-employ those people. (not to mention create new jobs for people entering the job market for the first time)

By: Dan

Dan — Wed, 14 Oct 2009 13:26:37 +0000

I agree the ASX 200 will find itself running out of momentum next year, even with continued improvement in the underlying economy. It will likely punch through 5000, provided that global economic and political stability doesn’t change suddenly.

I’ve read a lot of negative assessments though for the US, with the Federal Reserve likely forced to raise interest rates (central banks have lost faith in the USD and are buying Euro and Yen) to prevent an ongoing flight of capital away from there. Might this have knock on effects for Australia, with China having to keep waiting for its biggest customer to start buying again?

By: Anon

Anon — Wed, 14 Oct 2009 03:33:07 +0000

Well summed up. I dont see how the BHPs etc are going to lead us higher from the data I am seeing.
I wouldn’t be suprised if the materials sector underperforms the rest of the market for the next 12-18 mths.

“If mining exports pick up and Australian exporters see increased profits then the market will push higher, however if global growth remains weak then I expect it is going to be hard for the market to push much higher over the last quarter of 2009.”

Well said – I agree.
The tech sector will likely outperform over the interim aswell… Intel just blew away bottom and top line forecasts !

Hey just a side issue – above not advice, only for debating – pls see a financial advisor for decision making and advice.

By: Mike Harmon

Mike Harmon — Wed, 14 Oct 2009 01:15:54 +0000

I found your blog on google and read a few of your other posts. I just added you to my Google News Reader. Keep up the good work. Look forward to reading more from you in the future.