shares 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 [...]

By Bruce Jennings|2022-02-02T12:34:00+11:00February 2nd, 2022|Market News|0 Comments

‘Wall of Worry’

Shares Climb a 'Wall of Worry' - but is it sustainable? by Dr Shane Oliver - Head of Investment Strategy and Economics and Chief Economist, AMP Capital After a roughly 35% plunge from their February high point to their lows around 23 March on fears regarding of global recession on the back of the coronavirus shutdowns, share markets have since rebounded sharply, led by US shares. The rally has pushed the Australian ASX 200 back through 6000 for the first time since March. A common concern is that the rebound in share markets is “too optimistic” and “irrational” – how can share markets rebound so rapidly when economic conditions are so weak, coronavirus uncertainty remains high, the US is seeing civil unrest and US/China tensions are rising? I must admit that I have also been surprised by the speed of the rebound and think maybe the markets are ahead of themselves. But I have seen this happen before and [...]

By Bruce Jennings|2020-06-16T10:28:36+10:00June 16th, 2020|Market News|0 Comments

Market Fall on Coronavirus Fears

Recent market falls Share markets fell last week with the Australian market experiencing one of its worst weeks since August 2011 (when people thought the EU would break up). Negative returns in any given period can happen in the share market with this week standing out for its severity. However, we also see historically shares have lost value in approximately 22 weeks out every 52 weeks since 1980. It is not a rare thing to see in the share market. Shares lost money because a rise in Covid-19 (a.k.a. coronavirus) cases outside of China saw investors sell out of shares and look to safer assets such as bonds or gold. This is because efforts to combat the virus will likely see travel, trade and business activity either slow or shut down temporarily. That would see weaker demand for goods and services, so business profits and wages are likelier to struggle in the short term. Major movers in Global Markets [...]

By Bruce Jennings|2020-03-04T13:11:39+11:00March 4th, 2020|Community Activity, Market News|0 Comments