The Fundamental Analyst: All Ords run comes to an end

Friday, 29 June 2007

All Ords run comes to an end

Well all good things must come to an end. As predicted the All Ords retreated in June. Nowhere near as much as I would have liked but hey at least I got the call right. Given the fallout of the housing market in the US, an exhausted consumer, high headline inflation, weakening corporate profits and deteriorating credit markets (did I leave anything out?) I think the US market is going to do it tough in July and the All Ords will not be immune from its effects.

3 Comments:

Anonymous said...: dhukka,

No, sorry, when the revised figures are released you will see that the ASX was actually positive for June.

Anything "red" is just incorrect.

jog on
grant; 29 June 2007 at 11:04 pm
The Fundamental Analyst said...: No doubt the bulls will shrug this month's performance off and expect the market to resume it's upward momentum. However I get the feeling the All Ords is going to see a few more red months before the year is out.; 30 June 2007 at 11:49 am
Anonymous said...: dhukka,

If the Tax reforms to Private Equity are changed both in the US & Europe, potentially the *LBO Put* will expire.

Should this happen, only corporate buybacks will remain. They will become increasingly pressured under falling earnings to stop incurring increasingly expensive debt to fund them, thus another shoe drops.

But, it will still take time and the laws to actually be passed.

jog on
grant; 1 July 2007 at 4:41 am