In the 2002 tech crash, the DOW dropped 30%, the XAO about 20%. In 2007/2008 Dow down 15%, XAO 25%!
I cant see why the XAO should have dropped more than the DOW when the Aussie economy is so much healthier. I believe its an overreaction, and hopefully the worst has already been priced in. The DOW I believe will drop another 10%.
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