A weak dollar makes out exporters trade into strength which is good in terms of bringing money back into the economy. It s also a positive for travel and holidays because a weak dollar convinces many holidayers to stay at home and spend into the Australian economy. The low dollar also encourages a decline in spending on imported items which lessens the likelihood of increasing inflation or inflation getting out of hand. If you are a trader, the low dollar now needs to be closely watched for trading opportunities. Our markets simply have not followed the wild swings on many of the overseas markets, which suggest that, even though present sentiment is negative, it will not last long.
Economic uncertainty is a little like winter in that most things go into a holding pattern.
While it may be time to stay in doors it s also a time to be used for conserving your energies, a time for learning to take place and a time for preparing your strategies for the next season in order to grow strong. The strongest growth season always follows winter. As an investor, or someone seeking to take control of their financial future, this slowdown should be used for knowledge acquisition. It provides an excellent opportunity for learning how to do things differently in order to take advantage of the next growth cycle. However without learning, you may fall into the trap of doing the same things over and over again.