Everyone forgets the massive run-up in the ASX driven by commodities, prior to 2007.
There has also been a switch toward dividend paying stocks, as investors retire in Australia. Profits paid in dividends won't support rapidly escalation valuations.
Our high currency, which has yet to find a floor, has also kept foreign investors away.
The GFC in America led to high unemployment. Since then companies in the US have been recording higher profits and this has driven their markets higher. However, companies did not hire much for the first five years after the GFC and unemployment remained high during that period.
The US markets have a higher weighting of new technology stocks, which have performed strongly, also.
Which might be what our innovation PM is waffling on about?
