Related Topics
Stocks , Investing

A “Buy Signal” for This Global Stock Market?

Why investors in Australia’s stock market “might be able to take heart”

by Bob Stokes
Updated: December 12, 2019

Australia usually doesn't capture the headlines in leading financial publications. However, our global analysts believe that the continent's stock market deserves your attention now.

Before explaining why, let's mention a thing or two about Australia that might surprise many investors.

First, the continent has not experienced a recession since 1991! Australia has had a remarkable record of economic growth for almost three decades. However, since the 2008 financial crisis, quarterly growth on a year-over-year basis did slow to an average of 2.52%. In fact, for the third quarter of 2019, annual GDP growth came in at 1.7% -- a little higher than the second-quarter's 1.4%, but still far below the average.

So, what should global investors make of Australia's slowing economic performance?

Well, you might be surprised by the answer.

Here's a chart and commentary from our recently published December Global Market Perspective:


Investors might be able to take heart from the recent dip to 1.4% in the second quarter. That's because slowdowns to 1.5% or below have tended to be long-term bullish for the All Ordinaries for the past six decades--although four signals out of the prior 12 (in 1972, 1974, 1990 and 2000) preceded large declines in the index.

Our December Global Market Perspective also provides you with our long-term Elliott wave count for the All Ordinaries.

Plus, you'll also learn about a classic "head-and-shoulders" pattern in the price chart of a major European stock market, and a price pattern in an Asian nation's main stock index that also has a must-see message for investors.

There's much more, including extensive coverage of currencies, metals, rates and energy.

It's all in our in-depth Global Market Perspective, which you can review without any obligation for 30 days. Look below to get started.

A Literal World of Financial Opportunities at Your Fingertips

Yes, you’re just a few clicks away from having our in-depth Global Market Perspective on your computer screen.

As you scroll through the 50+ pages of this monthly publication, you’ll find coverage of 40+ worldwide markets. When you get through reading, you will know that you’ve been thoroughly briefed on what you need to know now about global stock markets, currencies, rates, energy and much more.

Our global analysts alert you to multiple opportunities. Just as important, you learn of financial dangers to avoid.

Try our comprehensive Global Market Perspective without any obligation for 30 days.

China Evergrande: We Showed "Tomorrow's News Today," Four Years Ago

China Evergrande was the world’s "most valuable" real estate brand. Yet when the bottom fell out, not all investors were surprised that Evergrande is in trouble: See why the unsurprised includes Global Market Perspective subscribers.


China, India: Richer or Poorer?

Read this excerpt from the September Asian-Pacific Financial Forecast to see where China and India are headed: for “wealth creation” or “wealth destruction.”

Why “Losses Are the Norm” in the Stock Market

Sir Isaac Newton said: "I can measure the motions of bodies, but I cannot measure human folly." Get the financial context of this famous mathematician's statement, plus learn how investors can lose money in the best performing mutual fund.