If
you are in your twenties and just starting out in the stock market -
cheers to you for getting in early and starting to invest into your
future. Now you may be wondering what to start investing in and what
your strategy should be.
In this week's MONEY AND INVESTING show
Andrew Baxter talks all about this, as the topic of the week is how to
invest depending on what season of life you are in.
In today’s fast-changing market landscape, knowing where to invest your money has never been more critical. Both the Australian and U.S. stock markets offer unique advantages, but understanding their differences can give investors the confidence to make more informed decisions. This article explores key distinctions, market trends, and essential factors to help guide your investment strategy. The Power—and Pitfall—of Local Bias Australian investors often gravitate toward domestic equities, and for good reason: there’s comfort in familiarity. Local companies are household names, operate in a shared timezone, and are heavily weighted in Australian-managed funds. This can create a home-country bias that leads to an overweight in Australian stocks. However, Australia's market represents less than 2% of global equities, while the U.S. accounts for nearly 45%. A globally balanced portfolio should reflect that reality—though in practice, many portfolios fall short. Performance Snapshot:...
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