Our market has been diverging from the US markets for sometime. Investors here will have no option but to try to get into higher yielding instruments and will react quite convincingly in future runs.
It's thought by 'experts' that our o/n bank rate won't go into negative territory as there is the feeling that 2% is enough to weather the coming storms. That may be but SMSFs will start chasing anything that has a yield very soon. The xjo etc will quite possibly amaze and dazzle but the indices performance is nothing to get complacent about.
Sharp corrections after crazy peaks followed by corrections look to be something we'll have to live with. I point to Europe as a prime example that we're going to follow.
