AMP Oliver’s Insights – Australian vs Global Shares

AMP’s Dr Shane Oliver compares the performance of Australian and international shares in this edition of Oliver’s Insights.

A summary of the key points is as follows:

  • The underperformance of Australian versus global shares since 2009 reflects a combination of tighter monetary policy, the strong $A into 2011, the slump in commodity prices, property crash phobia and classic mean reversion.
  • High dividend payouts are not to blame. In fact, Australia’s performance is not quite as bad once dividends are allowed for.
  • It’s too early to say the underperformance by Australian shares is over, but some of the drivers may be waning.

To access a copy of this edition of Oliver’s Insights, please click the button below:

Oliver’s Insights