Perhaps there is such a thing as divine intervention. Earlier last week Prime Minister John Howard and his Environment Minister Malcolm Turnbull both encouraged the population to pray for rain. It took a few days, but eventually it came. It’s good for the garden and good for our grey water tank which we imagine is still no more than a quarter full.
Last week saw another record breaking week on the Australian stock market. The All Ordinaries added another 1% to take it to a close on Friday of 6,187.20. The index is still a reasonable distance from the 7,000 point mark, needing to add 13% in order to get there.
Even so, with the spate of private equity buy-outs and interest in the Australian dollar from overseas investors, plus the ever burgeoning influx of superannuation dollars, a rise of 13% over the next eight months is far from improbable.
Records are tumbling on Wall Street too. As of Friday’s close the Dow Jones Industrial Average had climbed by 2.8% to be within a sniff of reaching 13,000 points for the first time. US market commentators are as bullish as Australian market commentators, during CNBC’s ‘On The Markets’ show, one of the participants, a Mr. Ned Riley from Riley Asset Management, put forward the prospect that the Dow Jones would reach 18,000 points by 2010, a rise of nearly 40% from Friday’s close.
The Daily Reckoning Australia