We are Liking 2 out of 3 “Panic Areas” at Current Levels

Nicholas Forsyth

Market Matters

Stock markets are very cyclical, as human emotion swings between “Fear & Greed” and the 3 markets discussed below are clearly experiencing the fear factor. The fear of China only growing at 7% (what most countries dream), has recently devastated emerging markets, sending the MSCI Emerging Market Index to a 4-year low. There is no doubt that with Australia’s reliance on commodities, some of this selling has hit the local market. – see chart 1. We believe if China can maintain ~7% controlled growth over coming years it will be extremely happy, the problem is a number of countries showed no foresight and thought it would be much higher for longer. The price fluctuations of Iron Ore, so important to Australia, sums it up: (VIEW LINK)


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Nicholas Forsyth
Director
Market Matters

Market Matters is an online investment and share trading advisory service designed for those that want to take their wealth further. We specialise in advice for active share market investors, including those new to the markets or those with a Self...

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