Sunday, July 27, 2025
Why do share markets crash? – Part B: Update on Australia
The simple answer is that the Australian share market crashes (and rebounds) because, and when, the US market does. The US is the largest and most influential market that affects all global markets, asset classes, and investors. What happens on our local market is almost always driven by what happens on Wall Street (with rare exceptions like 1907 and 1951), regardless of local conditions, events, or pricing.
Why do share markets crash? – A: Update on the US
Recessions do NOT cause or trigger share market sell-offs. Nor do share markets crash because, or when, they become expensive. Share markets fall when shareholders en masse suddenly start to expect imminent big cuts to profits and dividends.
Australia v US share markets – it’s our turn next!
Australia and the US have had the best share markets in the world for the past 100+ years, but: Why? Which market has generated higher returns? Which has had the bigger booms and busts? Who’s turn is it next?
Australia’s bounty: 400 years of exports. Is it just ‘luck’? Or masterful ability to adapt and pivot
Commodities matter! More than half of the 2,200+ companies listed on the ASX are miners (the vast majority are explorers with little more than a map, a compass, and high hopes, but a small number of miners do actually produce something).
Australian share market has gone nowhere for 16 years? Is it ‘broken’? Has it lost its mojo?
The All Ordinaries index hit a peaked of 6,853 on 1 November 2007, but it is barely above that 16 years later. Why? Is the local share market in terminal decline? Has it lost its mojo? Is it ever going to get back to growth? Is it time to give up on the local share market and look elsewhere?
Case Study: 2003-7 Uranium-Paladin bubble & bust. Lessons from the last bubble-bust
With the lithium bubble bursting, I am now receiving emails from readers (and hot stock tip-sheets) about how to jump in on the latest ‘hot’ commodity – uranium, as a possible solution in the transition from fossil fuels.
Market Monitor - October 2023 wrap-up: Central banks not done yet with rate hikes
Welcome to the Monthly Market Monitor for October 2023. First, here is our quick snapshot of Australian and US share markets, short- and long-term interest rates, inflation, and the AUD since the start of 2020
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