ASX 200 posts a financial year decline of 11%

In another edition of market illusions…..

It’s the time of year when Australians measure investment performance as our financial tax year (ending June 30th) has come and gone.

Some market watchers may think V-shaped rallies, overwhelming tech bullishness coupled with tsunami’s of fiscal stimulus should’ve equated to above average returns on equity markets.

Not necessarily the case…..

Between July 1, 2019 and June 30, 2020,
the S&P 500 recorded a 5.4% return,
while in AUD, it was 3.7%.

and deceptively, the ASX 200 posted a decline of 10.9%

Another topic for another day is why we draw the line on each quarter, calendar or fiscal year. Though I guess, we need to start somewhere in order to measure things.

July 6, 2020
by Rob Zdravevski
rob@karriasset.com.au