That Phil Lowe’s message was delivered on a day ofmade it all the more dramatic. The sell-off was triggered by Friday’s high inflation print in the United States and further intensified as speculation grew that the Federal Reserve may increase rates by 75 basis points at its meeting this week.Then there was an ever-so-subtle hint that the Bank of Japan, which has shown no signs of stepping back from its aggressive bond purchases, will have to cast its mind toward normalising policy.
So, how is Australia’s sharemarket poised to deal with what’s coming? Since the index is dominated by commodity producers that traditionally do well in an inflationary environment, that might leave the market well-placed. He says the balance sheets of corporations and households in both the US and Australia are in good shape. He believes non-housing-related consumption may hold up better than feared as rates rise, cushioning the effects of a global slump.
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Aussie share market wipes more than $110 billion in value plungeThe Australian share market has shed more than $110 billion in value as investors eye the implication of Wall Street entering a "bear market". Much more to come too. for long range forecasting WTF is going on!!!!! If values of companies are dropping, then something has to give if wages are going up.
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