In This Issue
Uncertainty on a number of fronts is keeping the buyers away
The biggest influence on financial markets continues to be the strength of the US dollar. Money is flowing back into the US from all around the world as investors are chasing the greenback as the safest currency. The longer this trend continues the more likely that we will see a reversal (eventually). The US economy continues to be very strong and the likelihood of further interest rate rises strengthens along with it. The tipping point may be when expectations are met and interest rates rise to such a point that they will have a negative effect on business conditions. Remember that punters always try to pick the peak and act in anticipation.
In the meantime the Metals and Mining Index is continuing with its downtrend as money is moving elsewhere. It is now down almost 10% from its high of only a few months ago. Energy seems the only place to have been where you could have made profits recently. That means oil and gas, coal and maybe, just maybe, uranium. The All Ords continues to make new highs but it is not being fuelled by resource stocks.
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