The first quarter of the calendar year is now behind us and, despite the turmoil and tragedies in Japan, the Middle East and North Africa, the Australian market still appears to be trading within a limited range.
The Australian sharemarket continues to underperform other major global markets, a continuation of the trend witnessed during 2010. The All Ordinaries has fallen 2.7 per cent in local currency compared to a rise of 1.7 per cent for the S&P 500 in the United States.
There are many reasons for this underperformance. However, the main factors appear to be the influence of the Australian dollar, the compositional make-up of our index and the higher economic growth rates on offer in other parts of the world. It is important to remember offshore investors are the marginal buyers of our stockmarket.
Click here to keep reading at Morningstar
The Australian sharemarket continues to underperform other major global markets, a continuation of the trend witnessed during 2010. The All Ordinaries has fallen 2.7 per cent in local currency compared to a rise of 1.7 per cent for the S&P 500 in the United States.
There are many reasons for this underperformance. However, the main factors appear to be the influence of the Australian dollar, the compositional make-up of our index and the higher economic growth rates on offer in other parts of the world. It is important to remember offshore investors are the marginal buyers of our stockmarket.
Click here to keep reading at Morningstar
No comments:
Post a Comment