Financially Speaking Autumn 2019
Published Apr 02, 2019
What happened to the share market in 2018?
Globally, Share markets were down during the December 2018 quarter with the Australian share market falling 8.4% and the global share market index dropping 11.1%. Market volatility spiked - to the highest levels last seen in 2016 when the share market was dealing with a sharp decline in commodity prices.
“The stock market is the only market where things go on sale and all the customers run out of the store...” - Cullen Roche – US economical commentator
Why did the share market drop?
Market sentiment can be fragile. What was once good news can become bad news and vice versa and, once the selling begins, it can acquire a life of its own.
There were three main reasons for the selloff.