Stock Markets 2010 Growth Murmurs
Friday June 19, 2009
Australia avoided a technical recession earlier this year, but despite our economy outperforming many larger world stock market players, growth in 2009 has been reserved if not steadfast. While the intelligent investor can make money in almost any market, many people are looking to a broader recovery and the return of growth to take the next steps in their investment.
The good news is the latest index released from the Westpac-Melbourne Institute agrees with other market speculators that suggest mid 2010 will see a return of demand and therefore consistent growth. For those looking to capitalise on share prices in the mid to long term, this is good news and could allow you to achieve profits.
Unemployment is still on the rise in Australia as companies shed staff to cope with demand shortages, and this is expected to continue throughout 2009. The depth of the damage is hard to predict until the full extent of the crisis is unravelled and the market is deemed to have approached the murky rock bottom.
This has been an important contributor to the current growth rate of the Coincident Index, which showed an improved trend in April this year. Nonetheless, contractions are expected in June and September quarters until 2010 when Westpac has predicted a growth rate of one percent.
The news is a good sign for many investors and confirms previous reports on the state of the stock markets.
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