I have many annoyances with the way markets are presented to people and what may or may not be essential for trading success. I only know three things about trading. If it is trending up buy it, if it trending down sell it, and don’t bet the farm. Everything else is fluff. One of the things that I regard as being fluff is that people must trade certain markets to be successful – the point is often made that you cannot make serious money unless you trade the US market. Given that the calendar year has just ended I thought I would put this claim to the test by looking at the top 20 stocks for both the All Ordinaries Index and the S&P500 Index.
The results can be seen in the chart below – I have coloured the US stocks red.
As you can see there is no comparison – domestic outperformed US stocks in this sample significantly. The table below shows the side by side comparison.
Nothing in trading is compulsory in trading – except the three things I mentioned earlier.