As stock markets make new highs around the world, the only real laggard is the ASX200/All Ords. While it has nearly doubled since the GFC nadir, or at about 7% per annum, Australian stocks are yet to exceed their 2007 highs:
One of the most enticing aspects of Australian stocks has not been their growth potential, but rather their dividend yield. This includes both foreign investors who are seeking more yield given the zero/negative interest rate policies in most of the developed world, and domestic due to the hugely tax advantageous franking credits.
Perhaps a reflection of the lack of growth potential in the Australian economy and how easily the financial sector has been able to turn the housing market into a perennial cash cow?
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