Uh oh...here comes trouble

[matt]

Well...the US sharemarket has taken a massive dive after the government's proposed big bailout was vetoed in Congress. It's had its biggest one-day fall in history.

Watch our market react today. It won't be pretty. Experts are predicting a fall of as much as 7.5% or 350 points.

Hold on to your hats.

[AstralTraveller (David)]

Can any financial expert (assuming that term isn't an oxymoron) tell me whether the $AU will go up or down relative to the greenback? Should I buy that Nagler now or wait a while?

[xstream (John)]

Buy it now the dollar is already starting to weaken against the greenback this morning and trading hasn't even started.

[erick (Eric)]

Bargain buys in the share market soon - if you have the money and a long term view!

[matt]

Ahhh...but which sector/s, erick?

Perhaps resources? perhaps finance/banking?

[h0ughy (David)]

well there goes the value of celestron and meade LOL

[Ric]

I think the may be a lot of self funded retirees that may be getting a tad anxious at the moment.

[Jen]

[erick (Eric)]

Originally Posted by matt

Ahhh...but which sector/s, erick?

Perhaps resources? perhaps finance/banking?

"Blue Chip" resources/oil&gas

Disclaimer: No promises - I don't know what I'm talking about and only hold shares through the agency of my independently-managed superannuation funds and so far one of them lost >6% last year

[matt]

It OK, mate. It was said more in jest than anything else

Wall St has had a big recovery overnight and that's expected to flow on to us today.

The volatility will be around for a while. All eyes on the US.

[acropolite (Phil)]

Originally Posted by astrotraveller

Can any financial expert (assuming that term isn't an oxymoron) tell me whether the $AU will go up or down relative to the greenback?

I'm not a financial expert (not even a financial anything), but I heard a report that makes sense.

The current thinking is that because the US economy is a basketcase and that demand for our resources is primarily driven by the US economy (even China's demand for example), our dollar weakens due to the prospect of less demand for our commodities (coal, iron ore etc) So if our resources are less in demand our economy will suffer therefore our dollar weakens. You should have bought the Nagler when the dollar was over 90cents US.