Amid the gloom, shares hold hope

The article notes that although a sharp rout has damaged investor confidence, several key risks appear to be receding — the mining boom is ending, the Australian dollar is in free fall, global interest rates are moving toward more realistic levels, and equity valuations have fallen. Taken together, those shifts are presented as reasons the overall case for the Australian sharemarket is actually improving.

In the article, 'waving goodbye to the mining boom' refers to the market moving past the high-growth, resource-led cycle that dominated recent years. That change is listed as one of the factors reshaping the market environment and contributing to a broader reset in valuations.

The article highlights the Australian dollar being 'in free fall' as a notable trend happening alongside other shifts in the market. It presents the falling currency as one of the developments that, together with lower valuations and shifting rates, is changing the investment landscape for Australian shares.

The phrase means that share prices and valuation multiples that previously looked expensive have come down quickly — 'in a matter of weeks' according to the article — so equities no longer carry the same high-priced label they once did.

The article states global interest rates are 'heading to realistic levels.' It frames this shift as part of a wider normalization in the financial environment, which is one of the reasons the article argues the case for the Australian sharemarket is improving.

According to the article, the latest rout has 'shredded' confidence in equities in the short term. However, the piece also suggests that the rout may be revealing or eliminating long-standing market risks, which could ultimately improve conditions for investors.

The article uses that phrase to signal serious weakness in the West Australian economy, but it positions this development alongside other market shifts (falling dollar, lower valuations, changing rates) and suggests that, overall, the broader Australian sharemarket case may still be improving despite regional weakness.

The snippet attributes the commentary to Matthew Kidman and references smh.com.au/business as the source for the analysis quoted in the article.