Sharemarket expected to dive this week
After increasing by an average of 20 per cent in the previous four financial years, the S&P/ASX200 Index looks set to end the 2007-08 financial year in the red. The sharemarket is expected to slide this week due to investors selling off stocks to manage tax losses before the end of the financial year. On top of this, concerns about the US economy's ability to avoid recession saw the S&P 500 Index shed 3.5 per cent last week in its worst weekly result since February. Goldman Sachs JB Were says that tax-loss selling will have a greater impact this year than in previous years due to the poor performance of some stocks over the last 12 months.
Source: The Australian Financial Review