sharemarket Archives - Jennings Financial Services

Sharemarket Falls – 7 Things to Consider

7 Things for you to consider by Dr Shane Oliver Dr Shane Oliver is Head of Investment Strategy and Chief Economist at AMP Capital. This document has been prepared for the purpose of providing general information, without taking account of any particular investor’s objectives, financial situation or needs. Most of the time share markets are relatively calm and don’t make the headlines. But every so often they have a tumble and make the 'front page' with headlines (or these days clickbait) like “billions wiped off share market” and “biggest share plunge since…”. Each one is met with analysis and prognostication from experts. Sometimes the plunge ends quickly and the market heads up again and is forgotten, like last September. But once every so often share markets keep falling for a while. Sometimes the falls are foreseeable, but rarely are they forecastable (which requires a call as to timing and magnitude) despite many (who got lucky) claiming otherwise. And so it [...]

No Grizzly Bears in This Market

An article by Shane Oliver; Share markets remained under pressure last week but I remain of the view it’s unlikely we’re sliding into a grizzly bear market as conditions aren’t in place for recession in the US, globally or Australia US shares fell 3.8%, Eurozone shares lost 1.6%, Japanese shares fell 0.2%, Chinese shares fell 3.5% and Australian shares declined 0.3%. Reflecting the “risk off” tone bond yields fell, credit spreads widened and commodity prices fell, with the oil price down another 11% over the last week, leaving it down 34% from its high in early October. The $US rose slightly and this weighed on the $A. Shares retesting October lows – double bottom or resumption of the slump? Share markets fell back to around their October lows over the last week. A retest of the lows is quite normal after the sort of fall we saw in October. Whether markets form a double bottom and head back up or [...]