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There certainly has been a marked increase in volatility on the share market in recent weeks. In March the All Ordinaries either rose or fell more than 1% on just two trading days in the month.
And in April the number of volatile days lifted to just three days. But in May there were 15 days where the All Ords rose or fell more than 1%.
At the heart of the issue have been concerns about budget deficits and debt maintained by European countries. But when you add in issues like the volcanic ash cloud in Europe, the oil spill in the US and worries about the health of the Chinese economy it is understandable that investors have become jittery. With share markets swinging wildly, it is important to stand back and see the big picture.
And while the Aussie market has softened recently, in the financial year to date it is still up by more than 10%.
Stephen Karpin
Managing Director
Research Insight Commsec Issue 163 3 June 2010 (4.30pm)
There certainly has been a marked increase in volatility on the share market in recent weeks. In March the All Ordinaries either rose or fell more than 1% on just two trading days in the month.
And in April the number of volatile days lifted to just three days. But in May there were 15 days where the All Ords rose or fell more than 1%.
At the heart of the issue have been concerns about budget deficits and debt maintained by European countries. But when you add in issues like the volcanic ash cloud in Europe, the oil spill in the US and worries about the health of the Chinese economy it is understandable that investors have become jittery. With share markets swinging wildly, it is important to stand back and see the big picture.
And while the Aussie market has softened recently, in the financial year to date it is still up by more than 10%.
Stephen Karpin
Managing Director
Research Insight Commsec Issue 163 3 June 2010 (4.30pm)
www.commsec.com.au
