The Economic Recovery Gains Strength
the ralton review Aug 09
The Australian share market was up strongly in August, marking the 6th consecutive month of positive returns for investors.
The rise in the domestic market was driven by better than expected results during reporting season, and a continuous stream of positive economic data both domestically and internationally.
We do not expect to see any significant downturn in the market from here given the flow of positive economic data and a rapid improvement in debt markets. The world is steadily regaining its "pre-Lehman Brothers" feel.
Australia also saw the finalisation of plans to commence the $50bn development of the Gorgon LNG project - a single project stimulus package expected to deliver significant economic benefits to the Australian economy for many decades to come.
The Gorgon project heads a massive pipeline of projects currently being considered for Australia (particularly in the mining and energy sectors) which will hopefully be a major driver of the Australian economy in the future.