I agree, with all the uncertainty over multiple taxes and the marginal government we have, who would have confidence to invest in an Australian listed company, let alone a MINING company (majority of the ASX) which may or may not have massive taxes applied to it soon! (note: "may or may not" investors don't like that)
International investors are using the AUD for high interest rates, so it actually makes it more expensive for them to invest in the ASX. So one option would be for them to put their cash in the AUD to collect interest, and also invest in stocks on an exchange that has a (artificially) depressed currency (note: all currencies except the AUD).
That said, why not (as an Australian with AUD to invest) invest in some NYSE listed companies while the AUD is so high. That way, when the AUD drops in value (which eventually it will) and the USD rises, your NYSE investment increases in value even if the company is trading sideways.
Hmm, a little off track there, but you can see why any other international investor would jump at investing in an (artificially) deflated currency/exchange like USD/NYSE, rather than the marginally governed home of the ASX with (stupidly) inflated AUD attached.
All IMO of course...
Disclosure: I do not trade International Markets, so the above is simply the ramblings of a small time investor.
-Timbo
LYC Price at posting:
$1.52 Sentiment: LT Buy Disclosure: Held
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