The market headed up this week although not in a straight line.
There is still caution in the market place as the Government has not provided much in the way of economic stimulus. Sure, the Budget provides a platform for Small Business to provide some short-term stimulus. But, Friday last we see the Reserve Bank trying to press big business to look for lower returns.
The goal is to try to encourage big business to put more money into capital expenditure that again will stimulate the economy. Good idea but you have to ask yourself who does big business work for the Government or the Shareholder.
The shareholder of course and I for one would quickly look to move my money out of any company that was not fiscally responsible.
What is clear is that infrastructure spending on a serious scale will not start until 2017, as there is simply not the money. This means higher unemployment will be the norm for the coming years.
Large companies as already talking about a recession and when we look at retails sales and forward expectations of infrastructure work I think they are right.
In these markets, it is time to build on weakness for long-term growth and live with your means.