hear hear...for my retirement too this is a good read... oh and obama says recession to end in sep 09
Westpac says that, superficially, we should be encouraged that the average level of its consumer sentiment index during the past six months is higher than the average of the previous six months, by 4.4 per cent.
But it also says it is premature to argue that the index has passed its lows in this cycle. Westpac notes that in the early stages of the previous recession the index also appeared to have recovered from its lows, but then it plunged by 15per cent as a rapid increase in unemployment filtered through. Given the disturbing signals from the leading employment indicators, which are pointing to a rapid increase in the unemployment rate during the next 18 months, we are likely to see the index reaching new lows then, it says. http://www.theaustralian.news.com.au/business/story/0,28124,25317299-25658,00.html
Just to make it more difficult, anecdotal evidence from the property industry, such as attendance and bidding at auctions and an increased volume of sales, shows there has been a return of activity in the upper levels of the property market as well.
Vacancy rates are below 2 per cent in all Australian capital cities except Perth and Canberra, where they are just more than 2 per cent.
Those on the ground say investors are coming back into the market, lured by the prospect of more reasonable prices and higher returns. But no one should be entering the property market without thinking hard about how they could be affected by changes in employment and what they would do in such circumstances.
There won't really be a concrete set of conditions that will signal the end of the economic crisis. If there were, we'd all beable to pick the bottom of amarket and become successfulinvestors
