ASX vs. Dow Jones

[monaroman76]

Hey guys, I have had this question on my mind for some time. Could someone please shed some light for me?

Obviously the GFC in 2008 was caused by issues in the U.S. At that time, both the Aussie market and the US market dropped significantly. My question is, why is it that the Dow Jones has rebounded back much better than ASX? The Dow index is within 10% of its previous highs, whereas the ASX is still struggling at around the 4200 mark?

Thanks.

 

[young-gun]

Hey guys, I have had this question on my mind for some time. Could someone please shed some light for me?

Obviously the GFC in 2008 was caused by issues in the U.S. At that time, both the Aussie market and the US market dropped significantly. My question is, why is it that the Dow Jones has rebounded back much better than ASX? The Dow index is within 10% of its previous highs, whereas the ASX is still struggling at around the 4200 mark?

Thanks.

Because we haven't pumped trillions of dollars through our markets and economy.

 

[Wysiwyg]

Hey guys, I have had this question on my mind for some time. Could someone please shed some light for me?

Obviously the GFC in 2008 was caused by issues in the U.S. At that time, both the Aussie market and the US market dropped significantly. My question is, why is it that the Dow Jones has rebounded back much better than ASX? The Dow index is within 10% of its previous highs, whereas the ASX is still struggling at around the 4200 mark?

Thanks.

This question is still relevant today. The DOW advanced strongly toward the 17000 point mark last night while the ASX still splutters along. However investment returns have been in line with U.S. just the Index advancement has not.

 

[coolcup]

Try charting the ASX is US dollar terms. I think it will show you a different picture.

 

[bigdog]

Check 5 year chart comparing ASX vs Dow

 

[coolcup]

Check 5 year chart comparing ASX vs Dow

In US$ terms the gap is nowhere near as large which is how international investors measure their performance.