The market dropped this week closing around 5500, which down 450 points or down 7.5% from the highs of April.
Yesterday brought the market to a nil return for the financial year so far however the key is the volatility.
The lows this financial year were 5100 and the highs of 5900 this is a swing of 800 points or 15%.
As we head towards the end of the financial year, I expect to see the market move up slightly.
Until we see some serious government policy on job stimulation, you can expect more of the same as businesses continues to struggle, and families cut spending.
We have heard a lot this week about the property bubble, but this is not the real story it is a distraction. The real story is that the cost of living in Australia has increased and living standards are decreasing.
We are now dipping into our savings to maintain our standard of living. Doing this is not something new, but it has been the trend since 2008. And a drop in living standards is a sign of a recession to come.
The falling dollar and low interest rates are not helping foreign investments and lack of focus on both sides of government on key issues indicates the situation will not improve short-term.