Julia
In Memoriam
- Joined
- 10 May 2005
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Why are Aussie stock markets falling so much?
Did you know?
That U.K. investors have been taking profits accumalated since 2003 due to capital gains tax changes that come into effect on 6th April 2008.
Up to 5th April 2008 the original cost of shares can be raised by 5% each year and all this is abolished on 6th April 2008.
Thus there has been a scramble to take profits and dump the ASX.
Noirua, another reason we have been experiencing greater falls than the US is that global hedge funds have invested heavily in the ASX because of our commodities boom and now - because of their own tight situations - have to sell off much of this investment.
Also because our financial sector constitutes a greater proportion of the index here than in the US, our market is overall down to a greater extent in the wake of financials having been so heavily sold off.