Drop in SP - WOW & DJS? - Aussie Stock Forums

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  1. #1

    Default Drop in SP - WOW & DJS?

    Hi All,

    I am trying to learn more about the world of investing and get a better understanding of how certain s/p is affected, Im curious as to why the decline of s/p such as WOW & DJS over the past 6 months?

    what is the main affecting conditions here?

  2. #2

    Default Re: Drop in SP - WOW & DJS?


    I think the general market conditions are not favourable for stocks at the moment for starters. There is also evidence of weaker demand and consumer cofidence is declining. Overalll both these factors are important in the retail, grocery sectors. High interest rates are also a drag, as this will cause less borrowing and and it will put more of a squeeze on peoples finances.

    I think all the above puts a lot of uncertanty in investors minds and thus more selling pressure on stocks like Wolllies.

  3. #3
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    Default Re: Drop in SP - WOW & DJS?

    That's what most investors will till you and its true to an extent.

    But we currently have a market with a lot of bad news because of concerns banks are going to lose money and the US is going into recession.

    If you're new, and are wondering why do we care about what the US does, unfortunately we're a bunch of suck-ups as the global financial system is quite interlinked and what happens in the US has repercussions here.

    Woolies has been going down because yeah partly there is a fear that people might stop spending as much because of high-petrol prices and that food costs more. Although Woolies is a retailer and we need to go there and get food to live.

    The other reason is because Woolies has gone up quite exorbitantly in the past for a retail stock, which are stereotyped to go slower.

    David Jones is going down because people simply don't spend as much on high-fly stores when times get tough.
    Check out my sharetrading blog @ www.allords.blogspot.com

  4. #4

    Default Re: Drop in SP - WOW & DJS?

    along with the global crisis, i would stay well clear from WOW personally for two reasons:

    1 - the oil price = increased transport costs, increased prices, less people being able to purchase necessities

    2 - costco - wait for them to open up in melb and i think sydney, WOW will loose competition

    thats only speculation/my but i can't talk as i am only familiar with the resource sector

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