Quote of the week: "Imagination was given to man to compensate him for what he is not, and a sense of humour was provided to console him for what he is." —Oscar Wilde
Another up week for the market, with any bad news being dismissed as investors chase the market up.
This week we even saw commentary out that, investors were now in a panic to buy in fear that they will miss out. This is not the first time since the GFC that the market was knocking on the door of 5000 points. In fact as the below graph shows it has happened five times before.
Is it different this time? Time will tell but with economic news in Australia pointing to the negative I think it is unlikely, although it may take some time for investors to shake the Bull.
The big news this week is that the unemployment figures are finally telling us what we have known for some time. Unemployment is moving up and will continue to do so, hours worked are down and have been for quite some time. While employment is tough, you can expect that the economy will lag.
There is little to celebrate in the US or China as such Australia can expect to see more tough times.
Just this week Boral has announced 700 jobs lost, another 220 in Queensland Health, and employers making it clear that given the economy and red tape around employment, hiring is not the key objective right now.
Coming up this week.
Consumer Prices Fourth Quarter - AUS
New House Sales – USA
House Price Index – USA
GDP Fourth Quarter - UK
CPI December - Japan