Financial Standard Comments - Good not great With an economy that's the envy of the OECD, why are Australian equity gains lagging? https://www.financialstandard.com.au/feed/latest?story=12714680 Tue, 28 Feb 2012 21:03:35 +1100 Tue, 28 Feb 2012 21:03:35 +1100 en-AU Copyright 2026 Financial Standard 5 Comment by Frank Smith () Dear Benjamin,
I am no economist so I have a chance of adding something that might make sense. That is, there are some half a million plus self managed superannuation funds in Australia plus many more retirees in public offer funds all of whom are sitting on huge unrealised losses following the GFC impact on financial markets. They do not want to have these losses realised so they are sitting on the fence hoping that the market will recover before they die. Every time there is a small improvement the sell orders are made just to get some parity back. That leaves only traders and speculators (not investors) in control and hence the sideways direction.
It seems the financial commentators view their role as to find and suggest reasons why the market is down. Now that Europe the European. China and the US situations are becoming a bit tired it's the oil price. Political instability here in Australia has insignificant impact both here and overseas. Markets are now simply casinos well beyond the understanding of the so called Mum and Dad investors. As soon as there are any real signs of solid recovery millions will pull out in spite of what their advisers tell them. We all have to sleep at night after all.
Regards,
Frank

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]]> Frank Smith () Tue, 28 Feb 2012 21:03:35 +1100