You are currently viewing our desktop site, do you want to visit our Mobile web app instead?

Australia’s stock market is the world’s best-performing since 1900

The country has a services-based economy and strong banking and savings system.
Pedestrians are reflected in a window as they walk past an electronic stock board at the ASX Ltd. exchange centre in Sydney, Australia. Image: David Moir/Bloomberg

Australia has the world’s top-performing equity market over the past 120 years, thanks to its ability to largely evade the global financial crisis, according to a new study published by Credit Suisse Group AG.

Stocks Down Under have achieved an annualised real local-currency return of 6.8% per year since 1900, according to the broker’s Global Investment Returns Yearbook 2020. The report was produced in collaboration with the London Business School and Cambridge University.

Converted to U.S. dollars, Australia’s return trumps that of 22 other equity markets around the world for which the researchers compiled data. The U.S. ranked second, followed by South Africa and New Zealand. The countries studied made up 98% of the global equity market in 1900 and still represent over 91% today, the report said.

While Australia is often called the “lucky country” due to its abundant natural resources, its services-based economy combined with its strong banking and savings system helped make it mostly immune to the financial crisis, the report said. The researchers also said foreign investors have been attracted by the country’s rule of law, education system and established regulatory frameworks.

The Australian equity market has also held up well amid the recent coronavirus-fueled global downturn, with the benchmark S&P/ASX 200 Index little changed on the year, compared with a 4.5% drop in the MSCI All-Country World Index. Hopes for further cuts to already low interest rates helped propel the market to record-high levels last week.

© 2020 Bloomberg L.P.

Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

COMMENTS   1

You must be signed in to comment.

SIGN IN SIGN UP

“While Australia is often called the “lucky country” …”

NO it did not just happend by chance!!
typical “not my fault, was chance” thinking of brain defunct social pseudo-scientists.

Aus have strong competent leaders and immigration aimed at only allowing the best into the country!

Lo and behold the libtart virus gets them all into the abyss as with SA

End of comments.

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: