Earlier in the year the ‘experts’ were predicting that the Australian stock market All Ordinaries index would make it to 6,000 by the end of the year, and should then achieve 6,600 by the end of 2015. This would have seen it back up around where it was before the Global Financial Crisis of 2007/08. Back then, at the time, this even seemed possible.
But with the iron ore price in the doldrums, the dollar remaining high despite all efforts to try and get it under 90 cents, more wars going on than you can count on a hand, and Australian’s generally unhealthy budget position, the All Ordinaries is only just managing to stay above 5,500.
Now we have ‘experts’ warning of a possible 20 percent crash before Xmas. If that happened it would take the Australian market back to under 4,500.
Some ‘experts’ are even going for a 50 percent correction.
Image links to full article in ‘Money News’.
Based on this it would seem very unlikely that the market is going to get to the expected 6,000 mark by the end of the year—but you never know. The price of iron ore might zoom back up.