{"id":48902,"date":"2014-03-24T22:50:36","date_gmt":"2014-03-25T02:50:36","guid":{"rendered":"http:\/\/countingpips.com\/forex-news\/?p=48902"},"modified":"2014-03-24T22:50:36","modified_gmt":"2014-03-25T02:50:36","slug":"why-you-should-start-buying-into-the-australian-share-market-now","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex-news\/2014\/03\/24\/why-you-should-start-buying-into-the-australian-share-market-now\/","title":{"rendered":"Why You Should Start Buying Into The Australian Share Market Now"},"content":{"rendered":"

By MoneyMorning.com.au<\/u><\/a><\/p>\n

Here’s something that won’t surprise you.<\/p>\n

Or rather, it shouldn’t surprise you.<\/p>\n

If it does surprise you then you really haven’t been paying attention.<\/p>\n

What’s the big non-surprise?<\/p>\n

Stock markets are risky. And yet it seems as though some of the smartest people around are only just starting to figure that out…<\/p>\n

It’s funny how different people react to the Australian share market.<\/a><\/strong><\/p>\n

We’ve warned for well over three years now that the stock market<\/a><\/strong> is risky.<\/p>\n

But we also warned that despite the risks of investing, it was a bigger risk not<\/em> to invest.<\/p>\n

With interest rates at record lows it’s quite frankly almost impossible to get a decent return without using leverage on any investment except stocks.<\/p>\n

And this risk in the Australian Stock Market<\/a> isn’t about to end anytime soon, even though the central banks would have you believe that interest rates will rise within two years. That’s hogwash.<\/p>\n

Interest rates aren’t likely to go up within the next five<\/em> years. And they may not even go up in your lifetime. That’s why we’ve made a bold call for the S&P\/ASX 200 index<\/strong> to hit 15,000 points – more than triple where it is today <\/a>.<\/p>\n

\n

Did they miss the past six years?<\/strong><\/h2>\n<\/p>\n

And yet a bunch of commentators still can’t seem to grasp the idea that this is and has been a risky market.<\/p>\n

It’s as though they’ve lived in a bubble for the past six years, totally unaware of everything that has happened.<\/p>\n

Take this op-ed in the Financial Times<\/em> from Mohamed El-Erian, the chair of President Barack Obama’s Global Development Council, and a former big shot at PIMCO, the world’s biggest bond fund:<\/p>\n

\n

‘Markets have been sanguine about geopolitical risk for several years now, a phenomenon illustrated by the relaxed approach they have taken to Ukraine’s crisis. There are understandable reasons for this, but contrary to a popular saying, this could well be a case where the trend is not necessarily the markets’ friend.<\/em><\/p>\n

‘After just one day of extreme nervousness, global markets had little problem digesting a major change in the map of eastern Europe. And Crimea’s annexation is not the only notable development in a crisis that has repeatedly surprised quite a few experts.<\/em>‘<\/p>\n<\/blockquote>\n

We have to say it. Is Mr El-Erian kidding?<\/p>\n

He says share markets have been ‘sanguine<\/em>‘ about geopolitical risk. In other words, he’s saying that markets have been happy or satisfied about the risk in the world.<\/p>\n

He’s got to be kidding. Didn’t he notice the hullaballoo and ruckus about Libya, Syria, Ukraine, North Korea, China, and any other number of crises that have reared up since 2008?<\/p>\n

We listed 19 such problems just a few weeks back. Granted, they weren’t all geopolitical events, but let’s be honest, there’s a superfine line between geopolitical and economic risks. One has a nasty habit of turning into the other.<\/p>\n

And yet, so far nothing has happened. 19 crises and counting since 2008, and the result? Most stock markets worldwide have gone up. One exception…one big exception is China.<\/a><\/p>\n

From the Port Phillip Publishing Library<\/em><\/strong> <\/p>\n

Special Report: ASX: 15,000<\/a><\/p>\n

Join Money Morning on Google+ <\/u><\/a><\/strong><\/p>\n

\n<\/img><\/a> <\/img><\/a> <\/img><\/a>\n<\/div>\n


\nBy MoneyMorning.com.au<\/u><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

By MoneyMorning.com.au Here’s something that won’t surprise you. Or rather, it shouldn’t surprise you. If it does surprise you then you really haven’t been paying attention. What’s the big non-surprise? Stock markets are risky. And yet it seems as though some of the smartest people around are only just starting to figure that out… It’s … <\/p>\n

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