MLC Market Watch

The global economic crisis (GFC) has wreaked havoc with Australia’s economy. We’ve seen GDP fall, unemployment rise, investments decline and a sombre mood take hold in the market.

There’s no guarantee that the worst is over yet, however several indictors are suggesting the rate of decline may be slowing and our economy may be starting to fight back.

Looking at the financial news in Australia, the general tone is ‘cautiously optimistic’. Some experts are predicting we’ve seen the worst of this recession and that recovery is imminent or may have even commenced. Others are predicting a long slow recovery. Which outcome is correct will depend in part on how and when the rest of the developed world, (particularly the US) resolves their significant debt and imbalance issues.

(more…)

While the Australian economy is holding up relatively well in the midst of a global downturn, investors are still bearing the brunt of the worldwide market turmoil.

With predictions of a global recession stretching well into 2010, and an assumption that Australia will not be immune, does this mean investors can expect more pain? The answer, it seems, is maybe not.

The world is in one of the most serious economic and financial crises since the 1930s depression. Economies have rapidly contracted, the world’s financial system is in disarray and unemployment queues are lengthening.

In response, governments across the globe are undertaking massive programmes to avoid a repeat of anything like the Great Depression. We’ve seen trillion dollar stimulus packages, government guarantees of banking deposits and lowered interest rates amongst a whole host of other measures in an attempt to stimulate the economy.

(more…)