Recent Reports Suggest Moderate Recession
Thursday March 19, 2009
Recent reports on both job and business conditions indicate that 2009 will remain in a moderate recession, which presents many challenges to those investing in the stock market. The prediction of a moderate recession (U shaped) upends previous trends indicating a mild recession (V shaped).
The predictions come of the back of job reports from the ANZ bank and reports on business conditions from the NAB. The number of job ads has fallen 40% in the past year after hitting a new low in February. Companies shedding employees and dealing with decreases in demand are blamed for the figures.
NAB business conditions shrank to -20, which is the lowest since the Australia's last recession in June 1992. NAB chief economist Alan Oster has stated, "It needs to be stressed that we see no fast recovery in Australian activity."
For those of us interested in stock trading, it may be an opportunity to learn how to trade declining markets, and at the least, it's more important than ever to take note of any stock market reports and related company information. While stock trading in a recession certainly presents challenges, it also presents opportunities.
Stock markets will recover eventually, so it's important to take appropriate measures to capitalise on any opportunities when this occurs. You can find out more about investing in shares here.
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