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aussie market has lost its relevance

  1. I'd like to hear some views on this.

    I can't see any use is following the Aussie markets any more as they are just a reaction to what's happening in the US. The markets simply waits to see what happens in the US and generates its own emotion from that. Only in extreme circumstances (ie. shockingly good or bad news) sways Australia away from the US trend.

    When the DOW PE is high (irrationally exuberant) it places a lid on the Aussie market as people are worried about corrections.

    When the DOW drops, so do we no matter what the valuations are here.

    I've started subscribing to a US investment service now - may as well just trade US stocks - atleast the upswings are steaper when they occur.

    As far as the current rally is concerned, if it isn't short lived this will be bad for out market as we will return to the late nineties when everyone was just waiting for the US to correct. I personally think the upswing will be short lived. The yanks will cheer for any old excuse to drive the markets up. It could be weeks but reality will set in again and down it will come.

    Unless offcourse some otimistic econimic data comes out soon and irrational exuberance will quickly return.

    views?

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