Australia’s outperformance, especially the mining sector, looks set to continue as money flows from US stocks towards Australia and China facing markets.
It started mid-year, the beginning of what looks to be a period of gains for the Australian market. After the best part of two years underperforming the US and other developed markets, the tide appears to be flowing the right direction for the outperformance to continue.
Source – Iress
The chart above shows the spread between the S&P/ASX 200 and S&P 500 over the last 10 years. Over the last six months, the Australian market has started to outperform its US peers.