Wednesday, 2 January 2008

That Was The Year That Was

The above chart shows the performance of some of the major indices in 2007. I didn't include the Shanghai Composite because it would have been off the chart with a 96.7% return for 2007. Also not included above was the German DAX returning 27.9% for the year.

Just for fun here are some predictions for this year:

  • The All Ords will not do as well in 2008 as it did in 2007.
  • The Nikkei will do better.
  • The Hang Seng will do worse.
  • Shanghai will do worse.
  • The US indices will put in negative returns.

Anyone else want to have a stab? Feel free to leave a prediction in the comments section.


Knobby22 said...

Good comments.

The Aussie economy is really hot and will get squashed but the world seems to be delaying this at present. I think the crash is still 2 to 3 years away. I would not be srprised to see another rise of 30% late this year or early next year.

The Fundamental Analyst said...

Typically you could expect to see a significant slowdown in the global economy 6 months after the US slips into recession.

I think it will have to wait and see how deep and protracted the US recession is before we can get a handle on the effects on the Australian economy.

No doubt the Aussie economy is hot, 2008 profits should be strong. However the second half of calendar year could start to show signs of weakness.