Buying International Shares

Hi Richard,

Thanks for the thumbs up much appreciated.

As you know there are a few moving parts when it comes to investing and especially so when venturing overseas:

• The $A has traded between 62 and 72c for the last 2-years, every time we’ve thought a breakout was likely the “Aussies” moved back to its comfortable point of equilibrium. At this stage China is the largest unknown, if/when Beijing can rejuvenate its economy the $A is should appreciate but until then its most likely to remain range bound.

The last 12-months have demonstrated being too concerned by lofty valuations can detract from a portfolios performance, e.g. Commonwealth Bank (CBA). The same can be said of picking to FX, a harder endeavour in most peoples mind.

The ASX200 only represents ~2% of the global equity market by market cap hence in todays rapidly contracting world we believe its prudent for Australians to be considering exposure to certain global stocks/sectors, before we even contemplate the ASX200’s underperformance post-COVID. The ASX may have banks and resources reasonably well covered but the air gets thin after that when we look at the smorgasbord on offer in the US.

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US S&P500 v ASX200 Indices

LAST UPDATED 20/11/2024 17:12

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US S&P500 v ASX200 Indices

LAST UPDATED 20/11/2024 17:12