August’s Performance Overview
- August proved to be a difficult month for equity markets as the macro news flow from offshore raised the
prospect of a “double dip” recession emerging in the US later this year.
- Domestic investors were very focused on the reporting season which provided little insight from companies into the near-term trading conditions and led analysts to reduce their FY11 earnings forecasts.
- The Federal election and the uncertainty of the result also contributed to investor preferences shifting to more defensive sectors as the overall market (ASX200) finished the month down -2.0%.
Download the Wrap Up of the Market for August 2010 here.