Is a Federal Budget a market mover?

[Jack Payback]

In light of the so-called horror budget we are about to be blessed with.

Does anybody ever recall a Federal budget having an impact on the markets at all?

 

[Jack Payback]

Obviously not.....

 

[Soft Dough]

Obviously not.....

A market mover?

Of course it will have an effect, but it will be initially minimal.

Any decrease in super contributions ( bad move imo ) will be offset by super funds moving from cash to equities.

Any repayment of debt issues will only occur once we draw it down.

Imo the greatest risk to the market in the future is the movement of baby-boomer money from the market.

 

[Julia]

A market mover?

Of course it will have an effect, but it will be initially minimal.

Any decrease in super contributions ( bad move imo ) will be offset by super funds moving from cash to equities.

Any repayment of debt issues will only occur once we draw it down.

Imo the greatest risk to the market in the future is the movement of baby-boomer money from the market.

Why would the baby boomer money necessarily be removed from the market?
The bb's are still going to need to derive an income from their investments.
If they have hung in there through all the downturn why will they subsequently decide to remove it when (presumably and hopefully) an uptrend returns?

 

[Soft Dough]

Why would the baby boomer money necessarily be removed from the market?
The bb's are still going to need to derive an income from their investments.
If they have hung in there through all the downturn why will they subsequently decide to remove it when (presumably and hopefully) an uptrend returns?

Cause at the moment they are living off income, not capital.