We now have a clear understanding how the US is going to start easing the monetary policy.
This week we have seen the share market fall back to the lows we saw mid June.
However I do not expect a bounce this time.
It is my view that we are now moving into an economic low, real business is doing it tough, the US business now needs to stand on its own and Australia is holding its breath going into an election.
The core issue around the election is the Mining Tax and the Carbon Tax. A change of government has promised that these two taxes will be repealed.
This should see the mining sector start to wind back up and provide a base for a stable economy.
The falling Australian dollar will also assist. Do not take my comments the wrong way, the boom is over, this much is clear, but our mining exports are still in demand.
However, a lack business confidence is stalling the economy at present.
I expect to see individual people start doing it tough as we adjust to the reality of the current economy.
As for the markets, this is a buying opportunity.
The economic low indicates to me that we are nearing the end of the Bear market.
It could be a couple of years but this is the time for value investors to buy.