Look back at 2010. Look ahead at 2011.
- Contrary to the expectations of the gloom and doomsters, 2010 turned out to be a positive year. The global economy expanded by around 4.5 per cent, the world didn’t slip into recession and global sharemarkets generally rose.
- Sure, the year wasn’t without its problems. Investors fretted about a double-dip recession in the US, European debt, and an over-heating of the Chinese economy. But worse case scenarios were avoided.
- Australian interest rates rose over 2010 and probably will again in 2011.
- At face value, the Australian sharemarket disappointed. But in large part that’s because the Aussie dollar soared – the second strongest currency in the world over the year. In US dollar terms, the Australian
sharemarket actually out-performed the ‘world’ index.