Market Round Up: October’s Outta Here 🙏 Nowhere To Hide, Aussies 🙈

by | 1 Nov, 2018

 

1. October’s Outta Here

And its been rough to say the least! October has been a sobering month for global markets, suffering the worst month since August 2015 with the S&P 500 losing 6.9% and the Nasdaq sliding by 9.2%.

However, it seems that the end of the month has brought some renewed confidence as investors snapped up some beaten down tech and internet stocks at bargain prices over the last two days. Amazon, Netflix and Facebook were among the risers that may provide a valuable lifeline to a battered and bruised market.

Analysts remain hopeful that markets can claw back some of these losses towards the end of the year as the holiday season provides a bump in sales activity, but the real damage may still be yet to come.

Estimates say that the U.S. and wider global economy could very easily slide into a recession within the next 12-18 months if external pressures, such as trade wars and rising interest rates, continue to take their toll on business.

 

2. Nowhere To Hide, Aussies

A little known fact is that the Australians are masters at dodging recessions. They’ve avoided them for for a mind-boggling run of 27 years – but how?

In 2009 they managed to escape the icy grips of the global recession by deploying fiscal measures (government spending & tax cuts) and riding the perfect wave of demand for its commodity-driven exports that came from China’s fiscal stimulus package. Lucky break, Aussies!

However, this record run of economic growth may well be coming to an abrupt end as the very same thing that saved them in 2009 may be their eventual undoing.

China currently purchases a massive 35% of Australian exports and if China’s ship sinks, Australia will go down with it.

Australia’s export-led economy is severely overexposed to changes in demand from the outside world and with trade wars and the prospect of a U.S. recession on the horizon, that spells trouble for the Aussies. big trouble.

Let’s hope they have another ingenious plan to save their bacon again!

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ALL RIGHTS RESERVED © INVSTR LTD. 2018

Risk Disclosure:
Invstr is a technology platform, not a registered broker-dealer or investment adviser. Invstr does not offer its own recommendations of any security or provide its own research to any user regarding any security transaction or order.
Please note, investing involves risk and investments may lose value. Past performance does not guarantee future results.
Brokerage services are provided by the following:
US-traded securities, including fractional trading, are provided to Invstr users by DriveWealth LLC, a regulated member of FINRA/SIPC. DriveWealth may not establish investment accounts to residents of certain jurisdictions. For more information, including disclaimers, risk and transaction fees click here.
India account traded securities are provided by SIC Stocks & Services PVT Ltd. SIC does not make any personal recommendations to buy, sell or otherwise deal in investments. Investors make their own investment decisions. The services and securities provided by SIC may not be suitable for all customers and, if you have any doubts, you should seek advice from an independent financial adviser. For more information and disclaimers, click here.

 

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