Economy and Indices – October 2019

The ASX was flat for the last month against the US Market rising around 4% for October.

In contrast to last month there are now less companies reaching new heights. This is exacerbated by the leading growth or momentum shares on the ASX experiencing significant falls, such as Wisetech Global, Altium, Afterpay etc. These falls have not dragged the index down significantly, although their falls have marked a turning point in investor confidence.

The economic backdrop has not been improving with lower global growth forecasts, lower inflation forecasts and unemployment rates creeping high. These factors are generally not conducive to higher markets in the medium term.

Leading Sectors This Month

Health Care +8.5%

Energy +2.6%

Utilities +0.96%

Lagging Sectors this month

Financials -4.7%

Information Technology -4.2%

Communications (Telcos) – 2.2%

The chart below shows Health Care in red at top, as being the market’s star performer this month: