It’s not news that the stock market is a bit of a mess in recent times and it’s not just restricted to Australia but the whole world. The thing is that we aren’t going to be dwelling too much on the world but on our Australian shares price and its effects.
For a while now the news around the Aussie’s finances has mostly been negative but not entirely hopeless. Why it isn’t hopeless is because the debt-fuelled party has in a way provided solace amidst the pandemic and other close events like jobs and assets rising prices for millions.
The fate of the Australian stocks price is one of uncertainty and here are some of the things that are causing this instability;
- The looming inflation; inflation is one of the biggest threats to the Australian shares price. Investors have been told to brace for impact just because of how the threat of inflation is having the market.
Modestly rising inflation can be beneficial to some investors as it shows consistency of economic growth at a sustainable pace but this inflation feels different. It could come with unexpected jumps affecting the stocks which could in turn lead to increased borrowing costs leading to falling in some of the stock prices.
- Economic strengths; Economic strengths play a big role in the upward and downward movement of the Australian shares price. The fact Australian economy is going through a bit of rising due to it growing 0.8% during this past quarter.
This growth is mainly due to household consumption. Though funny has helped the stock market have an upward trend. S you can say it is a bit t of good news.
- Current events; the resurgence of the Pandemic this past quarter was more of a double-double-edged. As I said earlier, household consumption helped the economy making the stock prices have an upward trend.
The household consumption was fuelled by the imposed sit at home by the government to curtail the pandemic but it also affected other industries making them experience loss and have their stock price go down.
- Natural disasters and the Australian shares price; there hasn’t been any significant natural disasters that would have affected the Australian stocks price. It’s been a nice year and investors can only hope it stays this way.
- Political influence on the Australian shares price; political influence is really important and we can see from the pandemic that the government mandated sir at home affected the market. Investors hope that the government would sanction people planning on manipulating the market in their favour.
- Investors’ sentiments and market manipulation; it’s not surprising when the market is manipulated in the favour of an individual or organisation. The Australian shares price hasn’t been exempted from this and has had a few instances this past quarter directly affect the stock prices negatively and positively.
The Australian shares price is going to be riddled with instability because of some factors that are beyond our power. We can only hope that this is the darkest night before the proverbial brightest day.