future valuation, page-2

Hi laga,

The selling by offshore investors may accelerate in ST expectations of AU dollar falling but it is unlikely to affect small caps as much as large caps - foreign ownership is much higher generally in large caps. And while it may be annoying you, we were at a PE around fair value when it started as a market so it is not like the selling is completely unwarranted.

It will stop as the expectation of continuing AUD falls reduce (likely to be approaching $0.80) and/or companies earning growth picks up. The fall in dollars will be helping a number of significant companies earnings significantly (CSL, Rio, BHP, etc) so I would expect this to be a fairly short term issue really.