When Forex is a “Ponzi Scheme”
The stock market has been in a tailspin for the past month or so, as investors have lost confidence in the outlook for the Australian economy.
But as a new financial crisis looms, the stock market is beginning to rally again, according to a recent report from the Australian Securities and Investments Commission.
The report, released on Thursday, shows the market has rallied 4.4 per cent over the past 24 hours.
The index has gained 0.8 per cent in the past week.
The latest report by the Australian Bureau of Statistics, also released on Wednesday, shows that while the Australian dollar is still weak, the Australian share market is in a stronger position than it was when the global financial crisis began in 2008.
“The S&P 500 index is now at a record high.
The Dow Jones Industrial Average is at its highest level since 2008,” the Australian Office of Trade and Investment (ATOI) said in a statement.
However, the biggest losers in the market are banks and asset managers, which are holding onto their money to protect themselves from losses in the event of a financial crisis.
Australia’s stock market was already in a bubble in January of this year, but the latest report indicates the bubble is now over.
The Australian dollar has lost more than 40 per cent against the US dollar in recent months, and is currently trading at less than $US2.50 a US cent, compared to $US4.30 at the peak of the global economic downturn.
While the dollar has risen in recent days, it is still down more than 30 per cent from its high in August of 2014.
What are some of the biggest risks facing the Australian stock market right now?
The biggest risk facing the stock markets right now is the global downturn, as the world’s largest economy struggles to get back on track following the global pandemic.
Although the Dow Jones Industrie index has hit new all-time highs, it remains a low-performing index, with an annualised return of 0.2 per cent.
The S&s;P500 index has risen by 3.4 points over the last month.
Meanwhile, the Nasdaq has risen 3.3 points over last week to its highest point of the year.
A major worry for investors is that the Federal Government may introduce capital controls that would stop people from buying stocks and bonds.
Investors are also worried that the Government’s budget is being delayed due to concerns about the global economy.