A 10% market jump if Gillard goes?


Possibly. Markets do work on confidence after all, and not many people or businesses have any in our current government and in particular its PM.

NOTABLE stockbroker Charlie Aitken has stepped up his attack on Julia Gillard, again forecasting the Australian equities market would rally by 10 per cent if the Prime Minister was rolled.

In a morning note today, Mr Aitken, now at Bell Potter, said the relationship between the government and corporate Australia was “non-existent” and business held little confidence in the current Labor government.

“I have written before that I believe a change of government in Australia will trigger a minimum 10 per cent rally in Australian equities, led by the mining sector,” Mr Aitken said.

“Even the rolling of the Prime Minister, which appears imminent, would be worth at least 5 per cent to the sectors that have been pressured by unnecessary regulatory change proposals.

“Australia’s biggest problem at the moment is confidence,” he said.

“Confidence is a derivative of leadership. If the rumours are right and the Prime Minister is rolled imminently, it will be the first step towards confidence, both corporate and consumer, improving in Australia off an extremely low base.”

At the time of posting, the markets were down 1.62%

UPDATE

The Labor caucus is split as to whether PM Gillard should go and be replaced by former dumped PM, Kevin Rudd.

Yay! It’s a merry-go-round! 🙄

Man, a lot of mobile phones must be running hot today.

UPDATE

And now the legal community has slammed her… separation of powers and all that.

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