aussie-shares-wellsupported-by-economy

Aussie shares well-supported by economy

AMP Capital Investors strategist Shane Oliver says the US recession is the biggest threat to Australia, but remains an unlikely scenario.

Rita Raagas De Ramos

November 14, 2007

The latest round of US credit worries, higher oil prices, local interest rate concerns, the impact of the strong Australian dollar, and the risk of another correction in Chinese shares are all significant short term risk factors for Australian shares. However, any correction is likely to be shallow compared to the falls into mid-August, says Shane Oliver, Sydney-based head of investment strategy and chief economist at AMP Capital Investors.

ôOver the last decade the Australian economy has been extremely resilient having sailed through relatively unscathed during the Asian crisis, the tech wreck, the deflation of the east coast housing bubble and the worst drought in generations,ö he says. ôAnd so far, apart from rising mortgage...

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