In line with other global sharemarkets, the Australian sharemarket has come off almost 10% from the highs reached in early January - is it time to panic or sell?
IML has confirmed that it will hold on to much of its stake in the ‘clean’ energy producer, Energy Developments, in the face of a takeover offer by private equity firm Pacific Equity Partners (PEP), which IML believes undervalues the company.
This week Metcash announced its decision to invest in Mitre 10. Metcash is currently the third largest player in the food & liquor industry player through its distribution to IGA and other independent food and liquor retailers.
The Global Recession is ending, financial conditions are improving and a recovery is underway. However, credit supply remains relatively tight. In our view the recovery will be slow due to a de-leveraging consumer and slow employment growth, despite continued hopes on China. Paul Winter, Equity Strategist
Over the past twelve months we have said that one of the key signals of a sustainable recovery would be the stabilisation of US house prices. We have also said that we thought there could be further fiscal stimulus in the US as although the stimulus has stabilised the US economy, final demand has not yet materialised and US consumer spending remains weak. The balance of forces suggests that the US housing market will continue to struggle for some time yet. The extension of the fiscal stimulus will help support this very weak market with a strong recovery still appearing to be many years away in our view, particularly given the continuing rise in US unemployment. Paul Winter, Equity Strategist.
