The Sydney Morning Herald --- Page: 27 : 24 January 2008 Original article by Elizabeth Knight
LexisNexis Summary
The movements of the Australian sharemarket cannot be rationally explained. The market fell by over seven per cent on 22 January 2008 and rose by over four per cent the next day. Markets do not always respond to fundamentals and facts are given different interpretations by investors. The Australian market is following that of the US. However, Australia is in a much stronger economic position, so its decline will be less dramatic. Australian inflation remains high and analysts are divided on whether interest rates will be raised in February.
