(UKX.L) FTSE 100

Well that was an expensive holiday compared to 2000 when I last visited Oz! Of course sterling was stronger then we got over 3 A$ to the pound then. Melbourne and Sydney are certainly showing outward signs of affluence and confidence far in excess of what I saw in the UK during my visit 1 year ago.
It is clear that the medium term prospects for Australia and New Zealand are far better than those of the UK, but as an outsider looking in I see every sign that optimism is at bubble levels best shown by their financial media. First warning sign was a phone in show where property speculators asked advice from 'experts' on how best to obtain maximum leverage from existing housing collateral - they have not really started their property bust as the U.S/U.K have and it's fascinating how people seem blind to their own colloquial bubbles whist they are popping all around, such complacency being in marked contrast to the reaction to outbreaks of swine flu elsewhere.

Secondly markets started their long awaited correction phase whilst I was away. The advice of financial pundits to a man was that this was just a healthy correction and a buying opportunity - this is the stuff which tops are made of as stock is distributed from the strong hands to the bag holders.

Thirdly Australia seems gripped by it's own little commodities bubble, a bubble which pre-supposes Asia won't sink if the U.S and Europe fall. Almost with uncanny timing we may be getting wave 2's up in stock indices coinciding with a non-confirmed spike top in Gold which will be followed by everything dropping in unison. The CAD:$ looks to have turned, we have confirmed downtrends in stockmarkets from Europe to Asia and are just waiting on the U.S to follow suit and the game is up.

Final thought: Despite the seeming bravado of Australians and the strength of their currency I had 3 seats to myself on the plane back, it was not even half full.