01/02/11: February 2011 Snapshot

…after the storm

We look at how the Australian share market and economy actually fared during 2010, and then examine some of the key trends which may influence share prices, interest rates and the economy during 2011 as the country begins to rebuild from widespread flood damage. Many were surprised the Australian share market had a quiet 2010, finishing the year just below where it started, especially when considering the local economy came through the crisis of 2008-09 better than most. But a sound economy does not guarantee a lift in share prices. Despite the powerhouse Chinese economy, there was a 14.31 per cent fall on the Shanghai Composite index during 2010. In stark contrast, the US and the UK economies may still be struggling but their share markets jumped 11.02 per cent and 9 per cent respectively. Download the PDF  Rick Maggi.