You are currently browsing the tag archive for the ‘wall street crash’ tag.

This morning the Dow Jones plummeted by more than 800 points before recovering and is currently trading in positive territory. Commentators on CNN, Bloomberg and Fox have been touting what would happen if the Dow were to drop to 7479 which would result in trading being halted for 30 minutes. The enormous recovery has excited the market with hopes high that gains continue.

Both the Ford Motor Company and GE (General Electric) have stated that they are not looking to file for bankruptcy protection (Warren Buffett’s recent injection of equity no doubt helps, as will GE’s plan to raise $15 billion from the equity markets). General Motors (GM) is in serious trouble (GM’s share price is at its lowest price in over 50 years) and GE, GM and Ford are all planning massive reductions in their workforces.

After President George W Bush gave his speech in an attempt to steady the market, it fell by around 200 points – showing the lack of confidence shown in the current Administration. I continue to talk to Americans who just want the Federal Election to be over and Barack Obama is far and away the person being touted as the preferred President.

As I am currently in New York which is a predominantly Democratic State, this does not come as a shock, although the sentiment seems far more reaching than just the State of New York. With just over 3 weeks to go to the Presidential election I am sure the President Elect will have plenty to worry about. At this stage it is being reported that Obama is leading by up to 10 points nationally but the election is set to be decided in only a handful of states – Ohio is at the top of the list.

Michael Marquette

On my way across to the US yesterday I really couldn’t help but hear people on the plane discussing the state of the US economy. Confidence is very low and it would seem as a foreigner that Americans are looking for change which seems to be Barack Obama. The Americans I have met so far aren’t talking recession – they are talking about a “Depression”.

I spoke with a retired man who discussed how terrified he was of Sarah Palin: he believes that the US needed someone young and energized like Obama and he was genuinely worried that John McCain could die and the US would end up with Sarah Palin as President which would send a terrible signal to the rest of the world about Americans as a whole. He also just wanted George Bush to go and described him as a “lame duck President”.

It made me think just how lucky we are in Australia. Our property market is holding up price wise although sales volumes are taking a beating and are only a fraction of previous years. With interest rates decreasing (the massive 1% decrease this week is key) and more decreases likely to come, property throughout Australia is starting to look very good. I strongly believe that investors both domestically and abroad are already starting to look at Australia as a safe haven for money.

Our banks are safe and deposits are guaranteed. Australian interest rates are decreasing and property pricing is not volatile, with demand from immigration assisting throughout Australia. With rental yields increasing, property as an asset class is looking extremely attractive. Marquette Turner Luxury Homes will be doing all we can during our time in the US to promote Australia a safe haven and with the Australian dollar falling, foreign investment in our wonderful country is looking very attractive.

Michael Marquette

Follow us on Twitter