US versus Australia - this is an interesting chart of the performance of the ASX 200 relative to the S&P 500 index.
We have dramatically underperformed the US since the GFC - a large part of that underperformance can be put down to the boom in the US technology sector following the unwinding of the resources boom. During the resources boom from 2001 to 2008-2009 the Australian market outperformed the US by 230%.
The point is that every market has its "Moments" - international investment is not always "better" or "clever" as some (international fund managers) would have you believe, which means IT IS NOT A PERPETUAL NECESSITY. We had our moment in the resources boom, China had their moment...Continue Reading