Our Ever Growing Global Risk

Today our share market recorded the worst one day fall in nine months on the back of Japan's announcement of increased radiation levels from the damaged nuclear plant. 

Having emerged from the Global Financial Crisis (GFC) relatively well compared with other economies (America & Europe) we, and all markets are now facing an ever growing global challenge - mother nature.
The fury of mother nature, a different medium, but just as merciless on our vulnerable markets. 

Knee Jerk Move?  It is no wonder people panicked today and sold down stocks.  For many, losses incurred in the GFC haven't yet been fully made back. 

So far this year we have seen devastation in Queensland, New Zealand and now Japan.  Not to mentioned the issues in the middle east squeezing petrol prices to record highs - what some households would equate to as an interest rate rise. 

There is some good news in this turmoil...
It is unlikely Aust interest rates will move, remaining stable perhaps until June (some even predict cut next month).  Japan is Australia's second-biggest trading partner representing around 18% of exports of coal, iron ore and beef; there has to be some sort of negative impact on our economy. 
And, If you are risk adverse and cashed up, there is likely to be plenty of value buying over the next few days.

However, it is worrying what mother nature will unleash next...just after 4pm a magnitude 4.0 earthquake was recorded off the coast of Cairns - not a Tsunami threat but not at all comforting news.