Stock Markets Shiver At Predicted Recession
Friday March 13, 2009
For those investing in stock markets, recent reports indicating a moderate recession could signal challenging times for 2009. The prediction of a moderate recession (U shaped) upends previous trends indicating a mild recession (V shaped) and is based on recent jobs and business conditions reports from some of Australia's biggest banks.
Job reports from the ANZ bank indicate the number of job ads has fallen 40% in the past year after hitting a new low in February, and conditions are magnified as companies shed employees and deal with decreases in demand. Overall unemployment rates are tipped to rise from 4.8% to 5%.
NAB's business conditions report shrank to -20, which is the lowest since the Australia's last recession in June 1992. Alan Oster, NAB's chief economist, has stated, "It needs to be stressed that we see no fast recovery in Australian activity." It's been predicted that no meaningful recovery will begin until 2010.
For those of us interested in stock markets, it may be an opportunity to learn how to utilise stock trading on a bear market. It's now more important than ever to take note of any stock market news and related company information. While stock trading in a recession certainly presents difficulties, it also presents new opportunities to make money.
Stock markets will eventually recover, and with the right planning now, you can be in a position to reap handsome rewards when the time does come. For more, you can find out general information about shares here.
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