Australia’s ASX200 stock market nudges all-time high as bad news means good news for investors

Shares surge despite weak overall growth in ‘potentially dangerous’ situation

A lot has changed since November 2007. Back then, John Howard was still prime minister, you could buy a nice house in Sydney for less than $500,000 and no one had ever heard of Instagram.

It was also the month when Australia’s benchmark stock market index, the ASX200, reached an all-time high of 6,828.7. With the full extent of the US subprime crisis still hidden, all seemed set fair for the local market to continue growing on the back of the mining boom and strong banks.

Related: Reserve Bank interest rates cut to historic low of 1% – as it happened

Continue reading…