Scorpion, most people believed the US would come out of recession. The media never really explained the serious EU debt crisis until recently.
Its only now everyone has become aware of how debt is a universal problem. The commodities boom made it look like a recovery. I even fell for it but woke up a couple of months ago. Commodities prices have been inflated by a low USD. I didn't think it was a problem becauses I couldnt see the USD rising any time soon.
When the all ordinaries reached 5000 the Pe ratios seemed very high. A correction was reasonably easy to pick. Today the market is still in good shape. I think 4400 is not bad considering the state of the world.
Commodities have only fallen moderately, its not all bad news. A 1% fall in commodities is nothing. Australia will be less effected by external factors because we have lots of foreign investment and cash. Unlike the U.S. we are more conservative.
