The Australian indices are following the Wall Street lead from Friday session. The ASX S&P 200 opened higher – just a bit above 3500 - and is skyrocketing upwards today. At 11:45 it is nearing 3670 and has been on the upwards move since opening.
The market recovery acts just as Buffet said. The expectations are for the economy to start recovering in mid 2009 so it is reasonable to see the bottom in the stock market about now. Or, in the November 2008 lows.
Some expect further downward pressure in the next quarter. Considering there will be the new US president and a whole lot of changes and actions coming up, I don’t think that would move the markets downward. Especially considering that Democrats want to bail out the US auto industry. There are other stimuli packages being announced by other governments worldwide, including the EU. This should prop up the commodity prices a bit by pushing the demand. Hopefully it will not be beating the dead horse.
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