306. Not all stock markets are created equal: Australia vs. The World

Australia might be home, but does that mean Australian shares should make up a big chunk of your portfolio?Tash and Jack unpack home-country bias and why the Australian share market looks very different from global markets. They explore diversification, the industries that dominate the ASX, and why investing overseas has become much easier than it once was.In this episode:🌏 Why Australian investors can end up with a much bigger exposure to local shares than Australia’s size in the global market might suggest🏦 How banks and mining companies make up a large part of the Australian share market, and what that can mean for diversification📈 Why global share markets have outperformed Australian shares over some of the periods discussed in the episode🇺🇸 How overseas markets can give investors access to industries and large global businesses that have much less representation on the ASX🏠 Why Australia’s focus on property, banks and resources raises bigger questions about where future economic growth might come from💰 How franking credits can make Australian shares attractive to some investors, without necessarily being a reason to invest on their own🧺 Why broad diversification can reduce the need to predict which country, sector or individual company will perform best next⚖️ Tash and Jack also tackle a listener question about investing versus putting extra money into a home loan offset, including the maths and the behavioural side of the decisionThe big takeaway? Investing close to home can feel familiar, but familiarity is not the same thing as diversification. Australia represents only one part of the global share market, with its own strengths and risks. Looking beyond one country can give investors exposure to a wider mix of businesses, industries and economies over the long term.Case Study Form@tashinvests@anakresina@getrichslowclub@pearlerhqGet Rich Slow ClubPearlerYouTubeHow To Not Work ForeverDisclaimer:Any advice is general and does not consider your financial situation needs, or objectives, so consider whether it’s appropriate for you. You should also consider seeking professional advice before making any financial decision.Pearler is an Authorised Representative 1281540 of Sanlam Private Wealth Pty Ltd AFSL 337927. Read the FSG available from https://pearler.com/financial-services-guideIf you are considering any of the products we spoke about during the show, be sure to read the Product Disclosure Statement & Target Market Determination available from the product issuer’s website before deciding. Hosted on Acast. See acast.com/privacy for more information.