VCR Wednesday, page-15

Reality Check.

Below are two charts. The first chart compares the Australian All Ords with Brazil's Bovespa. Brazil is another country heavily dependent on the export of commodities. The second chart compares the Ozzie All Ords with the Shanghai SSEC. That represents the stock market of our biggest trading partner. Both charts are from the time of the Trump election in the U.S.

Brazil/Australia.




China/Australia



Since the Trump election, we've done better than both those stock markets.

When people start be-moaning the under-performance of our stock market compared to the U.S. or Europe, they should understand
that they are not comparing apples with apples, or oranges with oranges. The U.S. has a huge technology industry. (That's why they have a technology exchange called the Nasdaq.) Australia has a minuscule technology industry. Europe, especially Germany, has a huge industrial and chemical complex. Australia has little secondary industry and a minuscule chemical industry.

Perhaps people will now understand why Australia is under performing the U.S. and Europe. We do not have the same sort of economies as those economic blocs. So we can't expect the same sort of stock market performance.

RB

RB.