Fear the taper, not the forecast

The IMF's downgraded growth forecasts should not shake local investors, but the consequences of Fed tapering and slowing growth in China will be more serious.

Slowing growth in China is of particular concern to the International Monetary Fund, but it is something Australian companies and investors have already considered. The share prices of BHP Billiton and Rio Tinto have already been whipped by investors at the mere thought of spluttering from China and lower commodity prices.

It would be naïve to think the state of the global economy has no impact on our share market, but in comparison with commodity prices, history suggests it isn’t that significant.

{{content.question}}

SMS Code Sent…

Hi {{ user.FirstName }}

Looks like you've already taken a free trial

Please enter your payment details

We have sent you a code via SMS to {{user.DayPhone}}

please enter this code below to activate your membership

If you didn't receive SMS code please

Looks you are already a member. Please enter your password to proceed

Please untick this box when using a public or shared device


Verify your mobile number to unlock a FREE trial

Please sign up for full access

Updating information

Please wait ...

  • Mastercard
  • Visa

Related Articles