The period since 2000 has been an amazing for Australian markets. This fascinating chart from Goldman Sachs which shows in detail the performance of every asset class over the last 15 years is both stimulating and a thought-provoking trip down memory lane.
You can click it to enlarge:
In the period it covers, Australian investors have been buffeted by the aftermath of the tech wreck and 9/11which coincided with a crash in the Aussie dollar to see international shares as the worst performer among competing asset classes.
The boom period before the GFC saw local shares surge, along with Australian Real Estate Investment Trusts (A-REITs). Australian infrastructure, for all the bad press about Public Private Partnerships, also performed solidly during this period.
Of course when the chips are down and stocks and risk appetite under pressure cash and fixed income come to the fore in 2008, 2009, and 2010.
But the post GFC recovery has seen A-REITs, international shares and infrastructure back in front.
What does this amazing chart from Goldman Sachs Asset Management tell you?
More than anything it suggests Harry Markowitz was right an portfolio diversification is important for long-term investors.