Nick Garlaounis 1Shares - Boom Crash Opera -
October 20th 2008 23:54
Welcome to the rollercoaster ride which is the sharemarket today. The slightest sniff of good news sees Wall Street, the ASX, S&P and so on rise by percentages, on the other side of the scale the slightest sniff of gloom and the sharemarket plunges in very much the same way. The sharemarket at this stage is an orchestra of ups and downs with little sign of stability on the horizon.
Are we falsely inflating or propping up the share market? Yes, absolutely!! Governments worldwide are spruiking good news and bail out plans and injections of capital into finance markets to keep things going.
Are we delaying the inevitable? You bet we are!! The sharemarket is long overdue for a massive correction and all the good news in the world is not going to stave off what should have happened 3 years ago!! Frankly it is not a matter of corporate greed which has driven this overinflation of the share market, it is the shareholder and the everyday consumer who has driven the values up beyond what they should have been.
Years ago, the share market was played by businessmen and high flyers, then came the share offers from corporates like Telstra, CBA, Woolworths and so on who offered their shares to the Muma and Dads of the world. All of a sudden interest in this growing sector piqued and every man and his dog jumped on board.
I believe is it is a correction which is well overdue and I certainly hope that the growth we saw in the past becomes steady over time and there is more governence of the financial sector, not by the corporates but by ruling governments who can control the influx and outflow of cash in these sectors.
Are we falsely inflating or propping up the share market? Yes, absolutely!! Governments worldwide are spruiking good news and bail out plans and injections of capital into finance markets to keep things going.
Are we delaying the inevitable? You bet we are!! The sharemarket is long overdue for a massive correction and all the good news in the world is not going to stave off what should have happened 3 years ago!! Frankly it is not a matter of corporate greed which has driven this overinflation of the share market, it is the shareholder and the everyday consumer who has driven the values up beyond what they should have been.
Years ago, the share market was played by businessmen and high flyers, then came the share offers from corporates like Telstra, CBA, Woolworths and so on who offered their shares to the Muma and Dads of the world. All of a sudden interest in this growing sector piqued and every man and his dog jumped on board.
I believe is it is a correction which is well overdue and I certainly hope that the growth we saw in the past becomes steady over time and there is more governence of the financial sector, not by the corporates but by ruling governments who can control the influx and outflow of cash in these sectors.
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