If the market fell to a new base of 2600-2700, we would have pretty much wiped out 7 years of growth in the market. Unlikely..... *We have minimal inflation *Economies growing at 4%p.a.. *Sectors are deregulating. *Confidence is still quite strong
At 2600-2700 points, the average P/E would be about 10 (back at 1930 levels), there would be no money being shifted into growth companies....Once the corporate air is clear, Australia has bullish potential...
But the US on the otherhand, the NAsdaq has further to fall, and the Dow still has downside.
Loo at the Japenese market, the Nikkie at around Nick Lesons time was at 18,000, now its at around 10,000. But there economy is built on differeing fundamentals, both cultural and economic to the US.
I dont really take much notice of the flucting indices, but seek small companies (under $500m )and trade on their values.
UNLESS there is some major catastrophe and everyone sprints to cash,
