Australian Sharemarket Up 13% Since September
I was reading Alan Kohler’s Eureka report on the weekend and was very pleased to read that we have had a sharemarket rally of 13% since September is a positive considering:
1) The major economies in the world are slowing down
2) Who really knows when Europe is going to be resolved and if the risk of a debacle are priced into our market
3) Banking stocks for the last 12 months are down around 4%-12% for the year and with weak credit growth ahead.
4) Commodity prices may fall as China’s growth slows
So in summary it is certainly not a bed of roses going forward but valuations on many ASX companies are low and atleast we have started the year on a positive note.