Investing Internationally - Is it Risky?
April 10, 2008 by Josie Kay · Leave a Comment
Q. My adviser has recommended that I invest some of my money overseas. It sounds a bit risky?
Josie’s Answer - The main reason why you would allocate some of your funds, overseas is for diversification.
For your info, the Australian sharemarket represents around 2.3% of the world’s total sharemarkets, which means that nearly 98% of the world’s shares are not available to you.
A bit of trivia, you will be surprised to know that Australia’s sharemarket is actually smaller than the markets of Switzerland (3.1%)The size of our market is not too dissimilar to some of the world biggest companies. Read more
Please tell me when the share market started to decline
April 2, 2008 by Josie Kay · Leave a Comment
Q. I listen to the show every week. Could you please tell me with reasonable accuracy when the share market started to decline. Thanks Robyn
Josie’s answer: Hi Robyn. Thanks for your question and I am crossing my fingers that your investments have not suffered too much with the recent volatility.
I am assuming you are referring to the All Ordinaries Index, which represents the top 500 stocks listed on the Australian Share Market.
This index appears to have peaked on 1st November 2007 at 6853. As at today’s date (2nd April 2008), the index closed at 5544, which means it has dropped approximately 19% since that date (as you would know it has been lower!).
To get back to its peak, the market now needs to increase by nearly 24%. Who knows when it will reach its peak again, but historically speaking it is not unusual to see it exceed its previous high within 5 months. Read more
Investing in the Australian Sharemarket
Q. Do you think people should put some of their hard earned money into the Australian share market?
Josie’s Answer - Just like investing in property, investing in the share market is a long term commitment (7 years plus, but preferably longer). <!–[if !vml]–>
The share market does go up and down and that can be nerve racking for investors, simply because everyday on the television the All Ordinaries Index, which represents the top 500 companies is broadcast nationally. Immediately, you will get that warm and fuzzy, sometimes euphoric, but at the other times that glum feeling. Read more
.
