Australians Turn to Overseas Stocks

The Wall Street Journal recently published a feature article featuring two of our wonderful Quantum Financial clients, Paul and Marlene Denton and comments from my colleague (and brother!) Tim Mackay.

Background: As internationally recognised experts in Self Managed Super Funds (SMSF) and Exchange Traded Funds (ETF) investing, the Wall Street Journal approached Quantum Financial to create this feature article that was published on the front page of the Wall Street Journal in the USA, Europe and Asia.

Quantum Financial in the Wall Street Journal

Quantum Financial clients Paul and Marlene Denton as featured in the Wall Street Journal

Global shares look more attractive to Australians these days as the resource-dependent economy and the local currency are flagging.

SYDNEY—Australia has one of the largest pools of retirement savings globally, along with some of the world’s most stubbornly parochial investors.

But as the resource-dependent economy faces a possible recession after 24 years of avoiding one, overseas shares suddenly look more attractive. And if the Australian dollar keeps falling as it has over the past year, that would add an exchange-rate windfall to overseas returns.

Australia’s economy expanded just 0.2% in the second quarter from the first, the weakest in four years. China’s slowing economy has translated into less construction of skyscrapers, bridges and railways there, hurting demand for raw materials, such as iron ore, that Australia exports.

“We’d look silly if we didn’t move into international equities with the current uncertainty about the Australian economy,” said Tim Mackay, a financial planner at Quantum Financial Services in Sydney. “You don’t just get better returns internationally, you also benefit from the exchange rate.”

You can read the rest of the article in PDF format below.



Claire Mackay

About Claire Mackay

I am a financial planner, SMSF expert and company director. I thrive on providing independent, expert financial advice to my wonderful clients. I was recognised as Financial Planner of the Year 2015 and Investment Adviser of the Year 2014. My website is here

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