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ASX200 : Dow Jones - Underperformance

Discussion in 'General Investing Discussion' started by JustB, 19th Feb, 2011.

  1. JustB

    JustB Well-Known Member

    Joined:
    15th Jul, 2007
    Posts:
    47
    Location:
    Sydney, NSW
    Hi All,

    The Dow Jones peaked at 14,090 prior to the GFC, before tumbling to 6,630. A loss of 53%. The recovery has seen the Dow Jones recover to 12,390, still 12% below its peak.

    On the other hand, the ASX200 peaked at 6,800 and tumbled to 3,150. A loss of 54%. However, the recovery has only seen the ASX200 recover to 4,930, still 27% below its peak.

    What are people's opinion on the cause for the dramatic ASX200 underperformance? Was the ASX200 peak of 6,800 much more over-inflated that the Dow Jones peak of 14,090? Or has the recent Dow Jones rally been over-inflated?

    Do people feel the ASX200 offers good value and good prospects of upside in the near term? Or have we seen a more sustained decoupling from the Dow Jones?
     
  2. Johny_come_lately

    Johny_come_lately Well-Known Member

    Joined:
    1st Jul, 2009
    Posts:
    703
    Location:
    SE Queensland
    Hi JustB

    You can't really compare the two indices because
    a) They are two different markets
    b) A different starting time will return a distinct growth chart between the 2 indices

    Here is a good article.

    Closing the gap - Andrew Page - Yahoo!7 Money Matters




    Johny. :)