This updated table below shows how much of a laggard ASX has...

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    This updated table below shows how much of a laggard ASX has been since when the inverted yield curve appeared , relative to other key bourses globally. We are only ahead of the Footsie and even Hang Seng is now ahead of us !!

    Perhaps international investors have shunned our local bourse due to a weaker outlook for AUD and future corporate earnings in general (in tandem with a declining economic prospect) and also due to our economic susceptibility to China. The second aspect that may well have caused our malaise has been lack of investor confidence led by the numerous scandals that plagued us in 2019. Lower local interest rates have not boosted investor confidence but instead only served to confirm investor fears that our economy is seemingly spiralling downwards.

    Look at XGD against HUI. HUI represents index of international gold producers (gold bugs) and actually is up 2.8% despite a rocky and choppy gold price. But XGD is down 21.3% over the same period which is extraordinary and inexplicable!  

    Column 1 Column 2 Column 3 Column 4
    0   5/8/19 Today % Gain
    1 Nikkei 225 20,720   23,392 12.9%
    2 DAX 11,659   13,147 12.8%
    3 Nasdaq   7,726 8,654 12.0%
    4 CAC   5,242 5,861 11.8%
    5 S&P500   2,845 3,142 10.4%
    6 DJIA 25,718   27,911 8.5%
    7        
    8 Shanghai   2,822 2,924 3.6%
    9 Hang Seng 26,151   26,645 1.9%
    10 ASX 200   6,640 6,730 1.4%
    11 FTSE100   7,224 7,216 -0.1%
    12        
    13 HUI 217.62 223.72 2.8%
    14 XGD   8,151 6,412 -21.3%

    If ASX & regulatory authorities wish to improve our local stock market to become more investable in the future, it needs to better step up
    1) Corporate governance standards , making it punitive for directors who fail to meet standards of proper governance
    2) Improve corporate disclosure standards including standardisation of revenue and profit disclosure formats
    and material disclosure standards
    3) More stringent standards for IPO requirements
    4) Check on excessive remuneration for management including performance shares etc
    5) Review of short trading mechanisms
 
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