Where will it end?

Discussion in 'Wall St. News' started by S2007S, Jun 3, 2007.

  1. S2007S


    Where will it end?
    Email Print Normal font Large font June 2, 2007

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    The resource boom continues to roll on and the sharemarket keeps climbing. Picking the peak is the biggest and the most challenging game in town. Danny John reports.

    AdvertisementKERR NEILSON knows a thing or two about markets. Australia's newest billionaire has made a name for himself - and his firm, Platinum Asset Management - through his uncanny knack of picking stocks of undervalued companies around the world and patiently watching them turn, sometimes literally, to gold.

    Which is why it is of more than passing interest that Neilson, the great survivor of the 1987 stockmarket crash who is now worth a cool $3.5 billion thanks to Platinum's recent stockmarket float, has chosen to sell part of his funds management company.

    For, while unlocking value was no doubt a good reason to sell, Platinum's arrival on the Australian Securities Exchange a fortnight ago was yet another sign of what everyone at the big end of town is talking about but cannot yet agree upon.

    How long can the current bull market last and, consequently, when will the next crash happen?

    No one is prepared to predict a crash - at least not in the near term. But most are becoming increasingly concerned about how much room there is for growth. We may not be at the peak. But many can see the summit.

    From Dr Shane Oliver's vantage point, there is no evidence we are entering a bear market yet. But the AMP's chief economist reckons we are certainly in the final stages of the bull run.


  2. Usually overextended valuations or economic turmoil trigger bear markets.
  3. when a fire starts only so many people can fit through the doors. Thats the whole basis for a legalized pyramid scheme. Its to fuel the next tier of people to support the people preceding them.

    It never fails. The aggregate valuation of a market on paper only exists on paper till those resources start getting pulled out. Thats why the initial sellers end up stealing the market valuation from 90 percent of the rest of the populace.