Got a few quotes in the Investor Daily today…click here …the article suggests I favour global equities which I do but I don’t. I’m certainly skeptical of the global equity upside potential but the main basis to my thoughts are that global equity markets have far greater diversification than the Australian market which is really just the banks and resources sectors…hence our risks are more concentrated than globally.
Basically I am a big believer in including global equities as part of the equity exposure and am a little skeptical of the local bias. Past performance doesn’t equal future performance so at this point in time I don’t particularly care that global equiiteis have performed poorly over the last 10 years just like I didn’t care that it was the best performing asset class the 10 years before that.