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clock Created with Sketch. 12/07/19
17:45
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Originally posted by StefanF:
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I'm not sure I understand how you link a lower AUD or an AUD being the same level as 10 years ago to the economy taking a beating. The forex market is a complex mechanism and the reason why the AUD went to USD$1.1 in the first place is because the US economy took a hammering and the monetary policy became much more accommodating out of necessity which impacts the exchange rate. At the same time you had China ramping up stimulating fiscal policy via infrastructure projects that increased demand for Australian commodities such as iron ore and coal which drove the AUD up further. In regards to APT, I need to stress again that members of hotcopper have suggested a recession would see APT do well and I'm simply saying that this is far from reality. It's a very simple comment and doesn't require us going into in-depth macroeconomic analysis and forex dynamics.
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This is true. APT actually has more exposure to recessions than other stocks. Predominantly used by women to buy shoes, makeup, fashion etc. Luxury and price elastic goods due to merchant paying the fee.
