We called a pull back in the market that seems to have now started.
Jobs have been in the media this week with Qantas shedding some 5000.
Around Australia: 6900 jobs have gone from mining - 6140 from the aviation industry - 7600 from the manufacturing industry. This totals 20,640 direct job losses and does not account for any flow on affects.
Our economy is starting to bottom. And will continue to do so as companies look to cut costs and look to the government to lift the restraints on business.
The next stage will be when we start seeing Industrial relation reform.
When the economy is slow people stop spending. This will affect earnings growth. As the market is always forward looking you can expect to see the market pull back in the short-term. We must wait for the government to get the infrastructure spend happening. This in turn will get consumer confidence back on track.
The economy is the last thing to bottom after that we can expect less volatility.
In short, I expect the market to pull back for a last time during which I will be looking to get fully invested.