Uh Oh! Big Share Market Fall. Real Estate Still Falling Too.

I don’t want to frighten anyone, and I am sure hoping this is not a trend and that things pick up real soon because I have a tiny holding in shares myself and market movements also affect my meagre superannuation, but have you seen the headlines in the financial section today?

The All Ordinaries index fell 81.6 in the one day, which is about 1.7 percent. This market index is now back to where it was mid-2010, almost 12 months ago.

On top of this house prices fell for the fifth month in a row. According to news.com there are more mortgage defaults happening now than at the peak of the Global Financial Crisis.

[Ctrl+Click on the news.com snippet to go to the article on news.com]

This can’t be good.

On top of this the Reserve Bank of Australia is saying they will have to raise interest rates either in June or July. They say they have no choice as the high Aussie dollar is pushing up inflation and they have to keep inflation under control or things will really go pear shaped. But putting up the wholesale interest rate will put lots of people under more mortgage stress.

What a situation.

Maybe I should sell up my small share holding while it is still in profit.

What to do? What to do?