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Equities rally, but can Australia break its underperformance trend?
Australian equities hit a fresh all-time high last week amidst a continued global equity rally. While the Australian equity market has performed solidly in an absolute sense over the past 12 months, delivering a total return of 11%, it has lagged the global equity market and indeed Australia has underperformed most of the major equity regions. Figure 1: Australian equities have lagged much of the world over the past 12 months (total A$ returns) chart The relatively small size of Australia’s IT sector and our disproportionately large weighting to resources (predominantly mining) have been key factors behind ... (full story)