Hi crashy, I think XJO might be falling due to increasing likelihood of an interest rate rise in Australia next month. DOW on the other hand is going up because of talk of 50-75 basis point reduction in interest rate in USA. I would say you should buy shares when the market has started recovering….it is still in a downtrend and you don't know how much more it will drop. Shares seem to be easily breaking most support levels/trend lines at the moment. I believe all this uncertainty in share market may be a good thing for property market because people will start moving money to property market. Hope this helps
If the sudden drop of the All Ord to less than 6000 prompts you to buy more Aussie shares, you assume that prior to the drop that Aussie shares were properly valued. This drop may be an overreaction but it also may be a correction. Unless you know the intrinsic value then you won't know whether to buy or sell.
Also, what happens in America won't necessarily happen in Australia. There is short-term correlation between the two market but they are fundamentally different. E.g. in Australia there is a bias towards resource companies. There are hardly any health or tech companies in the ASX200. Because of this, the dot-com crash didn't hurt the Australian economy as much as it did the American economy.
I think its that china growth is reliant on the U.S to buy the crap they make. Recession means they will buy less crap from China, which means growth may stall. This may cause resources demand and prices to fall hard. Our resource stocks have priced in perfection.
Plus our banks ARE exposed to sub-prime, regardless of how you cut it.
Insurance is suffering cos weve had a lot of storm payouts.
In my opinion I believe that the market is fueled by FEAR and GREED … I don't believe that the sub-prime is the only issue, if you read the papers the OVERALL sentiment is an opinion that the USA is going into a recession … This will create fear in other sectors other than banking and finance.
Fear and Greed … nothing more nothing less … the secret is and always has been "buy low and sell high"
Oh if only I bought BHP or AMP or…… I could have been rich today – famous words fron share traders he he
Some people in this post are talking about making money only when the share market is rising.
What if you could make money on any share market in the world no matter if the share price is going up, down or even sideways, it's just a matter of knowing which strategy to use, when and how to mitigate your risk. Education is the key to learning about these strategies. Want to know more, just email me or reply to this post.
wealths post was condescending and deserved a slap.
Richard, not sure why you spat the dummy, my post was CLEARLY directed at wealth, not you. Perhaps I should have said IN MY OPINION, its too late to start shorting. You may be right, there may be further falls. But I think risk/reward has flipped to the long side.
now if we can all be civil, lets help each other to make some $$$$
turns out the sun comes up 3 hours before ASX opens, and goes down about 4 hours after ASX closes. Imagine that, doing work outside of ASX hours. Nah, say it isnt so!
also, Ive just been told that forex is a 24 hour market……..Im stunned……..did you know this? geez, I might be able to trade AND renovate. Imagine my surprise! Here I was thinking that I couldnt possibly walk away from the computer since there is no such thing as wireless laptops, phone alerts, CNBC or anything else that might let someone not watch the computer screen every second of the ASX 6 hour day. me so silly!
another thing quite amazing, is that CFDs are available on stuff worldwide, not just ASX. And amazingly, not everything trades during the ASX day, seems there are different timezones in the world………freaky!
next thing someone will tell me the ASX is going to start not being open on the weekend, which means I can "refurbish" for 14 hrs a day. wow!