Only the brave need apply

Share trading will be just for the brave this week.

The lead from Wall Street could hardly be worse.

The Dow Jones industrial index continued to fall Friday, US time, after its plunge on Thursday.

It finished the week no less than 4.2 per cent down.

That happened as oil prices continued to test new highs.

The Australian market performed relatively well, on Friday, Australian time.

It fell, but not by as much as Wall Street had, the night before.

Oil futures have been trading at levels close to $US143 a barrel.

But while the US economy is dangerously close to recession, Australia is looking at a commodities boom.

However Australia still has its problems.

Business and consumer confidence are both down.

Inflation and interest rates are high.

And no-one expects either to ease, anytime soon.

Company profits have been slashed.

And investors know that the local company collapses, that have already occurred, won’t be the last.

Petrol prices, too, are creating havoc.

There is, as always, money to be made at this time.

But faint hearts will fail.

Related stories:

1. Oil dampens Wall Street rises
2. Wall Street recovers from early blows
3. Wall Street – finally – rises