The biggest threat to our stock prices going higher this year won’t be Tony Abbott’s policies but it will be government policies that could easily make or break our portfolios — Chinese Government policies!
Regrettably, the investment bank Credit Suisse last week peeled back its near-term forecast for our stock market’s S&P/ASX 200 index from 6500 to 6000. This was disappointing but still tells us that, if the experts paid to put out these notes think our market goes from the 5550-level that it is now to 6000, then we can make around 8% plus dividends. So we’re in for over 10% for sticking to stocks.
Sure, Greece was a worry but few experts thought it would cripple European growth that is gradually getting better. No, the big worry is China and it not only is making some economists mark down their global growth forecasts, but hot shot hedge fund managers, such as Ray Dalio of Bridgewater Associates in the US, have started to publicly doubt an economy and an investment play he strongly supported.