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09:09
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Originally posted by prawn_man
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HIG is in the same boat as many stocks on the ASX. And I think its because of Australia's economic situation. We are experiencing the tail end of an out-of-control housing boom in the big capital cities. If you have property, you're in debt up to your eyeballs (hoping that interest rates don't go up). If you are renting, you're wages are being stripped bare. If you are a rich professional, you've gone in hard for your 10th property with a wacking great debt to avoid taxes. So it doesn't leave much room for buying shares. If you want proof, just look at retail sales bumping along the bottom, wages frozen for 3 or 4 years, and work becoming more and more casualised. If it wasn't for the recent period of good iron ore and coal prices, Australia would be in a recession already. And as it stands, the about face on "debt and decifit disaster" by the treasurer and his team-mates, is a dramatic demonstation that the economy is spent and a major downturn will occur unless there is a stimulus.
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