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ARTICLE · 05 JUNE 2013

It's gotta be the shoes!: recent investment developments

The Australian stock market recently moved with renewed volatility and the Reserve Bank made moves to reduce the dollar.

AustraliaStrategy

The past month has certainly been interesting as the stock market gyrated with renewed volatility and the Reserve Bank made moves to reduce the dollar, however this was too late to save Ford who made the decision to close its manufacturing plants in Australia by 2016. Despite the outcry from many that an earlier move on the dollar might have saved jobs, this piece from the Wall Street Journal indicates otherwise. Ford's costs in Australia were double what they are in Europe and four times higher than Asia, so even if the dollar continues to fall it has a long way to go before Australia becomes competitive again. The move by the Reserve Bank to reduce rates, and the indication that it may continue to do so, also saw moves in the stock market which again puts the spotlight on active management with this interesting piece from Abnormal Returns.

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