Shane Olivers newslatter suggests that Australia should have a bias towards Australian Shares over Traditional Global Shares in the medium term based on the following 4 points
- Australia’s projected 5 year return is 9.5% compared to Global Shares projected returns of 6.9%
- Australian Shares pay higher dividends (4% vs 2.6%)
- They have better growth prospects with less structural constraints
- Franking credits for Australain based investors
Feel free to download the attached newsletter
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2011-Jan-28-Olivers-Insights-Why-are-Australian-shares-lagging-will-it-continue.pdf (158 KB)