Mainly because we have had economically intelligent governments --until recently. Bob Hawke had a degree in economics. Rudd has a degree in Chinese
Forget the carnage of 2008 and early 2009, Australia has been the best performing developed sharemarket over the past 110 years, according to funds manager Fidelity International. Gerard Doherty, managing director of Fidelity’s Australia business, says the Australian share market has posted a real return of 7.5 per cent a year since 1900, outperforming the US by 1.6 per cent and Britain by more than 2 per cent a year.
Next best after Australia was South Africa and then Sweden, with the US -- the world’s biggest economy and reserve currency -- bringing in the fourth best annual real return, The Australian reported.
But the annualised returns are in local currencies, meaning the US’s annual return of 5.88 per cent would look pretty good in Australian dollar terms when the Aussie falls against the US, as it did last year to a low of US62.5 cents in February.
Doherty claims $1 invested in the Australian market in 1900 would have been worth $2844 at the beginning of this year. The market levels were provided by the London Business School, which used the major indices of the day over the 110 years.
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