As can be seen from the graphic below the local market has endured an extended period of under performance relative to other Western markets. Yet, its performance is largely in line with a handful of Asian markets.
It has long been my view that local investors unfortunately suffer from a Western- centric hangover – in many ways we cling to news about what other Western markets are doing when in fact our fate is tied inextricably to Asia. My blunt view is that unless China gets its act together we will continue to lag. As a consequence I think the chart below is the most relevant chart to us.