Australian Global Market Stood The Test of Time – Credit Suisse

Must Read

Swiss Wealth Management firm Credit Suisse published its Global Investment Returns Yearbook last week. Credit Suisse published the Yearbook in collaboration with the London Business School, and it takes into account 123 years’ worth of data going back as far as 1900. The report noted that the Australian equities market has been top ever since.

Amanda Cheesley, deputy director for Wealth Briefing Asia, reported that the yearbook “covers all the main asset categories in 35 countries. This year, it focuses on commodities and inflation, and the authors examine whether investing in commodities offers an effective hedge against inflation. Rising commodity prices, particularly energy-related, have been a key driver of the steep rise in inflation in 2022. The authors explore the role that commodities play as an asset class.”

Michel Marr, head of Wealth Management at Credit Suisse, noted that 2022 was an unusual year for returns as bonds did not act as a hedge for equity markets which was the expected outcome seen in the last 20 years.

The report also noted that since 1900, the best-performing stock market with an average annualised return of 6.43 per cent in terms of real USD terms in Australia. Andrew McAuley, Credit Suisse Wealth Management Australia CIO, also noted that the Australian market has the second lowest volatility, following Canada. This is significant since the report covers 35 countries and 98% of world market capitalisation.

“Australia has a large, well-capitalised finance sector and extremely large savings pool in the form of $3.3 trillion in superannuation. Australia finds itself in the fortunate position of being the world’s largest exporter of coal, iron ore, lead, rutile, and zinc, and the second largest of gold and uranium,” McAuley added.

Credit Suisse experts also recommend that investors look at long-term asset allocation. Professor Paul Marsh, the co-author of the report and member of the academe at the London Business School, reminds investors to maintain perspective on the long-term investment horizon and utilise the knowledge in the Yearbook.

- Advertisement -spot_img
Latest News
- Advertisement -spot_img

More Articles Like This

- Advertisement -spot_img