XAO ... cautious optimism ... but ???

  1. 5,816 Posts.
    Hmmm... as long as we seem to be inextricably enslaved to dodgy US market, our booming economy has meant little if nothing at all to equity investors ..

    Traders are eating like chickens ... but adapt we must.

    For those with an ear to the ground, the dreaded 'R' word has been mumbled a few times lately, and specifically whispers concerning the emerging bad timing for Costello camp and those things political ...

    ABC Radio National report dropped the 'R' word this morning and interview with Chris Richardson of Access Economics confirmed an almost certain 'R' for 2003 here in OZ. Our five year boooooommmm ... is coming to an end and the inevitable property 'bubble' means a sharper downturn ...

    Now this will translate into interesting questions regarding equity markets .. as US economy is expected to be moving upward (W recovery... and subject to WW3) and we shall reversing towards the dreaded 'R' ...

    How this will translate for our equity markets is anybody's guess ... views will differ as usual.

    As chart shows ... beyond the important psychological 3200 ... 3208 the next test.

    Will a $0.50 AUD save Costello again ... one thing is for sure .. all the big levers will be pulling hard ... western economies desperately needs a BIG 2003 ...

    In the meantime, a cautious optimism is emerging and confirming as updated (280602) chart shows ...



    This is only my view ... read the red stuff.


 
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