ASX200 : Dow Jones - Underperformance

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?

 

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.