Money Minute – June 5 2017 Market Reaction

Market Reaction

Ross Greenwood: Good morning, and that’s what it’s all about.

It’s all about the attitude, it’s all about the spirit of the people, because while the images from Westminster, and Manchester; now from London, the Borough Market over the weekend are truly shocking the point of the attacks to strike at the confidence of Western communities around the world, is having less impact than those who carry them out would imagine, or even desire.

Now to work that out, you look at the stock market as well as those concerts.

The ultimate barometer of community confidence is the share market needs.

If these attacks strike at the heart of British society, the stock market should be tanking but no.

In fact, the stock market‘s been doing exactly the opposite.

Notwithstanding the current general election, the Brexit vote, and the near collapse of Greece, in the past few years the British stock market is at all-time record highs.

There’s another measure of confidence of so-called VIX index.

It measures expected market volatility.

For a rough rule of thumb, a score below 20 means volatility expectations are low.

You can see the spikes here on a charts – that’s Brexit, Greece, Europe – but you can see some response to the Manchester attack just a couple  of weeks ago.

But it’s short-term, it’s certainly not significant.

Come to Australia, where the national terrorism alert here is now probable, that’s mid-range, in the advice given by the government.

You can also see in our stock market, the volatility measure here is almost asleep.

So this is the VIX index uhh…VIX index of volatility over one year here in Australia.

It’s quiet – none of this means an attack might not happen but it does show that terrorists are not achieving the sense of panic in the community or the economy.

Instead, I’d suggest there’s a determination, a very strong determination, to stop these attacks and those who carry them out.

May 2017 links to popular Money Minute

Money Minute May 1 2017 Budget Blues

Money Minute May 2 2017 More Debt For Young People

Money Minute May 3 2017 Good Debt, Bad Debt

Money Minute May 4 2017 Major Mortgage Warning

Money Minute May 5 2017 Debt Warning

Money Minute May 8 2017 Smart Banking

Money Minute May 9 2017Budget Special

Money Minute May 10 2017Budget Special

Money Minute May 11 2017 Bank Brawl

Money Minute May 12 2017 How to Budget

Money Minute May 15 2017 BHP Stays Aussie

Money Minute May 16 2017 Fame Has A Price

Money Minute May 17 2017 Housing Market Back Fire

Money Minute May 18 2017 Taking Stock

Money Minute May 19 2017Tax Scandal

Money Minute May 22 2017Interest Only Warning

Money Minute May 23 2017Maths Mistake

Money Minute May 24 2017Brisbane Jitters

Money Minute May 25 2017Investor Revolt

Money Minute May 26 2017Education Scandal

Money Minute May 29 2017 Benefits Shake-Up

Money Minute May 30 2017Our World Turns Gloomy

Money Minute May 31 2017Hogan Tax Brawl

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