Australian (ASX) Stock Market Forum

Is 2018 shaping up to be a shocker of a year for investors?

greggles

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Low interest rates, inflated property market, a bloated U.S. stock market.

I can't see much ahead for 2018 that is positive. Corrections seem far more likely.

Where will the investment opportunities be in 2018? Short everything? :eek:
 

PZ99

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That's in addition to the ridiculous levels of debt the average households are servicing.

All the ingredients are there for a repeat of a decade ago.
 
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Oil.

Almost always goes up before everything else falls in a heap. With one exception it’s happened every time since WW2 so it’s a pretty consistent pattern.

Plus there’s been a collapse in investment in new production, inventories are falling and the Saudi’s, Russia and others are making no secret about their desire for higher prices.

Investing in oil or oil companies is one approach. Not owning a gas guzzler that you need to drive for 3 hours each day to work and back is another.
 

greggles

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You could be right Smurf. Oil has been doing well recently.

screenshot-s.tradingview.com-2017-12-12-14-35-40.png
 
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Nothing to worry about - the big squid reckons it's rational exuberance now, plenty more upside yet?
 

Knobby22

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I think it will be volatile. Chance for good opportunities for cash. I am 1/3 cash at present.
 
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I guess all the positive expectations have been factored into the Dow, so it is bobbing along somewhere near its top, it would have to be exceptional news to cause another massive breakout.
The ASX is in a somewhat similar territory, it has taken 10 years including the biggest mining boom and housing boom ever, to get back into the same territory it was pre GFC.
Putting the sum of both scenarios together doesn't inspire much confidence, add to this the spectre of negative changes to the tax treatment of investments in Australia, it is difficult to see what will drive positive sentiment and it is sentiment that drives the market.
Just my opinion and reasoning.
On a brighter note, about March the pension gets indexed, it wont be long before it will be earning more than what my SMSF earns.:D
 
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