Have you noticed that the Australian share market has taken a dive for 12 consecutive days now?
Some commentators are even talking about a bear market developing and a possible recession.
It’s already the longest losing streak in more than 26 years and shows no immediate sign of a rebound.
Over the past couple of days, major Australian Super Funds have warned about the likelihood of single digit returns in 2008 as a result of the share market fallout.
Commentators are also saying that if the share market drops much lower, many share investors will move their money into the property market because it is perceived as being SAFER and LESS VOLATILE.
This is generally the case when the sharemarket goes south.
Perhaps you’re aware that residential rents keep climbing because of a shortage of rental accommodation and that builders are going bust since they can’t sell their existing stock due to a general fear about rising interest rates.
Smart investors aren’t worried about rising interest rates because they know what strategies to put in place to deal with that situation.
Interesting isn’t it?
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