Amid the gloom, shares hold hope

As the lights go out on the West Australian economy and the latest rout on the local sharemarket shreds all confidence in equities, the case for the Australian sharemarket is actually improving. It would seem all the major risks that have plagued the market for so long are coming out of hiding. We are in the process of waving goodbye to the mining boom, the Australian dollar is in free fall, global interest rates are heading to realistic levels and equity valuations have lost their expensive tag in a matter of weeks.

As the lights go out on the West Australian economy and the latest rout on the local sharemarket shreds all confidence in equities, the case for the Australian sharemarket is actually improving. It would seem all the major risks that have plagued the market for so long are coming out of hiding. We are in the process of waving goodbye to the mining boom, the Australian dollar is in free fall, global interest rates are heading to realistic levels and equity valuations have lost their expensive tag in a matter of weeks.

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