Australian shares are caught up in a global speculative frenzy that can produce few long-term winners.
Long-term investors in the stock market should be praying for a rate rise from the US Federal Reserve next week – and that’s despite the fact that some of their stocks will take a beating if it does.
That might sound a bit illogical at first, but note I’m referring to ‘long-term investors’, not ‘speculators’.
The markets, including the ASX, are in turmoil right now because of speculators rapidly shifting positions – from pumping up stocks, to short-selling them, to fleeing into bonds, fixed interest and even cash.
