Australian market underperformance

Posted: December 3, 2013 in Uncategorized
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November has been a particularly bad month for Australia posting a -1.9% while US, Japan, China and part of Europe were up.

This highlight the importance of foreign diversification. This has been due to the fact that the post election optimism is actually failing to translate into real economic recovery bringing us mixed AGM results. The only shares that outperformed are the one with strong foreign revenue generating business.

A bit of the issue is that Australian politics should be called “Liberol”…..Liberal and Labor parties are too similar to generate a real change. And without a real change, Australia has a big challenge in the near future.

So the importance of a overseas diversification is very important in your asset allocation.

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