Recent downturn in the stock market

While investors have been busy arguing about whether or not we are due for a bear market or not the stock market has taken a downturn. Could this be because some investors are worried we could be headed for recession? Who knows? Let’s take a look at what’s been going on.

During May we saw both the share market and the Australian dollar drop. This was a result of the Australian Bureau of Statistics releasing a report that showed weak business figures. Capital expenditure fell by 4.4%  from January to March which came as a shock to many as it was expected to rise by at least 2%.

The outlook for business investment for the next financial year is not good as business are expected to invest 25% less than in the current financial year.

While the current outlook may not be positive the statistics could be wrong, an upturn was expected early in 2015 and it didn’t happen. Who knows if business investment will drop for sure? Either way, this is what is going on in the stock market right now. Happy investing!