Unemployment rate increasing!!!

The recent news to raise the debt ceiling is a good indicator along with increasing unemployment. The RBA has made it clear that the high AU is hurting us economically and making it difficult coming of the expansion in investment in the resources industry for other sectors to pick up the slack.  

Appears to be a race to the bottom unfortunately JP as the RBA tries to lower the AU. 

I really think global share markets are set up for a correction particularly the US markets. Stocks are looking expensive in relation to earnings on weak economic fundamentals.  Markets globally are reaching all time highs which is hard to believe in this environment. We all know the markets are psychologically driven. I don't know exactly what the trigger will be, although I have a fair idea, but when the market does start to correct it'll be panicked and fast selling which will perpetuate the move downwards. 

If or when the US fed attempts a taper I would imagine the markets will spasm similar to the reaction before the September FOMC. We also witnessed hot money flowing out of the emerging economies and back to the US. 

Europe is still a basket case with the French credit rating being downgraded to AA. A taper would see French borrowing costs escalate. 

The fed believes inflation isn't present but assets globally are increasing including stock markets and I think that's where the inflation is. 

When the situation does correct, and it will at some point, there will be huge opportunities. I'm keeping some powder dry! 

Jack 

The recent stake of the NYSE and DOW hitting new highs of 15,000 – I remember it being a huge deal when it hit 3,000 back in 1991 I think.  Lot's of people have been back buying stock on margins again.  It gives pause that the market will correct and I'm thinking we'll see some of that this winter or early spring.  US banks are starting to lend again and we are actually seeing some new houses going up around parts of metro Atlanta…usually in the northern more affluent areas like Cobb & north fulton.  My business in shared housing is flourishing…we can't even begin to keep up with the demand.  Fortunately, our business will do well in good & bad times.  I do expect some sort of correction and when it comes, it will continue to be global.  There are still tons of opportunities for creating income and wealth….and real estate is the number one place to do it.  My family made a fortune in real estate during the last US depression and I am poised to do it again for myself and partners.