Dalek, if I approach this question logically then I come to the conclusion that by years end we will seen the gains of the last 1-2 years (approx 13 - 20%) wiped off the map. After that, who knows but it could get very interesting especially after all that equity vanishes into thin air.
IMO these gains were in no way based on sound economic fundamentals, such as increased productivity or wage growth. They were based around 49 yr low interest rates and the govt doubling the amount of money thrown into the market, all in the backdrop of the global GFC. Hardly what we would call built around a solid foundation.
We've reached full employment, which means inflationary pressures and increasing interest rates. Thus, my previous comments of the market being 'cornered'. The men are soon to be separated from the boys.
I work along the old adage 'you don't get something for nothing'. Did Australians become 13 - 20% richer during the GFC? Did wages increase 13 - 20% during the GFC?
