Channeling the SPI
The Australian share market has been on a tear, reaching all time record highs for days on end now.
"THE Australian share market has become more expensive than the rest of the world for the first time in 15 years, according to stockbroker Bell Potter, which yesterday advised its clients to reduce their shareholdings in the publicly-listed stock exchange. Bell Potter, allied with investment bank UBS, said in a report that the Australian market was now trading at a higher price to earnings (PE) ratio than the rest of the world, which could not be justified.
Furthermore, every individual sector was also trading at a premium to its international counterpart, with the energy sector trading at a large 38 per cent premium while industrial stocks were valued 21 per cent higher... " http://www.theaustralian.news.com.au/common/story_page/0,5744,16617403%255E643,00.html
To put you in the big picture, this is the SPI futures index since 1985:
"THE Australian share market has become more expensive than the rest of the world for the first time in 15 years, according to stockbroker Bell Potter, which yesterday advised its clients to reduce their shareholdings in the publicly-listed stock exchange. Bell Potter, allied with investment bank UBS, said in a report that the Australian market was now trading at a higher price to earnings (PE) ratio than the rest of the world, which could not be justified.
Furthermore, every individual sector was also trading at a premium to its international counterpart, with the energy sector trading at a large 38 per cent premium while industrial stocks were valued 21 per cent higher... " http://www.theaustralian.news.com.au/common/story_page/0,5744,16617403%255E643,00.html
To put you in the big picture, this is the SPI futures index since 1985:
Labels: Markets
posted by Guambat Stew at Tuesday, September 20, 2005
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