Looking back on the week and trying to work out what it means for our investments, you can’t forget Qantas’ $2.8 billion loss and its share price rising 6%, Russian troops crossing into the Ukraine and stocks still going up on Wall Street, or not getting dumped. At home, this week of reporting season disappoints slightly. Our economy, however, continues to improve.
And even overnight, with an hour to go before the closing bell at the New York Stock Exchange, the British PM added to the spook factor with his warning that led to the UK Telegraph leading its website with “Isil terrorist ‘highly likely’ to attack UK, warns David Cameron…”. Against that however, the Thomson Reuters/University of Michigan consumer sentiment reading was a better than expected 82.5. This follows the consumer confidence take by the Conference Board, which rose this month to nearly a seven-year high.
As investors, these geopolitical concerns could make the next two months volatile. Throw in the fact that we see the US stock market at all-time highs and our market at around six-year highs adds to the potential volatility. But I liked two standout things this week.