You are viewing:-
you're reading...
1.Market Observations, 8.Was Sticky

13 Dec 2016 (AFR) – Interest rates not growth will drive the sharemarket

(13 December 2016, AFR, p28, by Philip Baker)

‘Sharemarket investors getting excited about the growth strategies of President-elect Donald Trump could do with being reminded that growth doesn’t drive stocks higher, earnings and interest rates do. Contrary to what sounds logical, growth does not have to be booming to produce solid gains in the stock market. Take a look at the performance of global sharemarkets over the past eight years since the worst of the global financial crisis. Rather than growth, it has been all the cheap money, and nothing much else, given the earnings reported during that time, that has been really driving shares higher.’

Read more at AFR.com (might need AFR login access, or try: AFR.com/trial)

Advertisements

About robertbrain

Brainy's Share Market Toolbox. Read the honest truth about the sharemarket. Develop or fine tune your investing/trading strategies using share price charts (technical analysis), or learn about the investment strategies of others. Melbourne (Australia) based - supporting share market investors and traders to build wealth through smarter investing using my Share Market Toolbox arsenal of weapons to tackle the market.

Discussion

No comments yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: