Sorry Australia does not have a diversified economy...

True, Japan is at the top.. Australia is No. 93. Have a look at the countries above us on the list and those below us...do you think it is better to be up the list or down the list?

 

saying australia should be more diversified economically is a political position, not a investment plan.

As an investor, didnt know about the list before you raised it. Dont care now.

 

It's not a political position at all, it is about raising awareness that there are other opportunities and areas you can look at for investing outside of Australia. It is not about the list, rather highlighting that investing only in a country that isn't very diversified increases your risk. As an investor you should always be looking at ways to manage your risk...and as was raised above you don't need to use fund managers who charge fees to do it (although you can if you wish).

Or you can put your head in the sand and do what you have always done

 

I love a sunburnt country,
A land of sweeping plains,
Of ragged mountain ranges,
Of droughts and flooding rains.
I love her far horizons,
I love her jewel-sea,
Her beauty and her terror
The wide brown land for me!

 

Our economy went through structural reform over the past 20-40 odd years. Starting with the Campbell Report and the floating of the AUD, through to the decisions to abandon most of our manufacturing industries eg. Cars, whitegoods, smelters etc which have affected our standings. We have focussed on becoming the 'clever country' as one step beyond the @fullylucky country.

We're now faced with an economy based on exporting minerals, ruining our natural landscapes and not focussing on ecotourism or education which are both earn export dollars.

 

But what happens when the supply chain breaks down for whatever reason:
-Australia has 28 days worth of fuel supplies
-Last refrigerator factory closed in 2016 (Electrolux Orange NSW)
-Last car tyre factory closed in 2010 (Bridgestone Adelaide SA)
-Last car factory closed in 2017 (Holden Adelaide SA)
Lack of diversification just adds to the risks for the whole economy.

 

I love australia its a great place to live, ever since i came here

But makes me laugh how so many aussies think we are almost the centre of the world

Speak to so many people outside of aus, and most will say beaufitul country, great place to holiday and live but we are virtually nothing to the rest of the world

 

Agree that aus lags in a lot of industries and is not the centre of the world.

In terms of investments, so what?

Many of those diversified countries would fall over each other to have australias resources and food security.

 

I've been around the world
A couple of times or maybe more
I've seen the sights, I've had delights
On every foreign shore
But when my mates all ask me
The place that I adore
I tell them right away
Give me a home among the gumtrees
With lots of plum trees
A sheep or two, a k-kangaroo
A clothesline out the back
Verandah out the front
And an old rocking chair

 

Exactly.
Just because a country isnt the centre of the world it doesnt represent the investment scale or risk

I know many that have made and lost heaps in dodgy countries


China is a major player on the global scheme but i trust australia over china when it comes to investments

Maybe it would be different if i was chinese

 

You forgot the smashed avos

 

International diversification I say it a non-event for 95% of the population and has little impact on their wealth building but if you want to make an issue out of it, then it becomes an issue
storm in a tea cup

 

they need to re-write the song for Gen Y
that was baby boomer era no smashed arvo

 

mental note: need to mention climate change in it too

 

Not sure who has their head in the sand ? What opportunities are overseas that is better than, and more diverse than what is available in Australia. Innovative Tech companies such as Altium, Wise Tec, Appen have performed better than t anything in the USA or elsewhere. I worked in the USA too for $3 an hour where every-body had to work 12 hours a day afford that "cheap living" I think resources are better spent where you get the best return, and you should do what you do best and outsource so your time can be more productively spent . I would rather earn $40 an hour than 40 a week . People need money to buy house's, productive use of time enables the purchase of a house, a house is where you store wealth and give security for further economy growing investing investing. After N.Z Australia is the least subsidized country making it one of the most efficient in use of capital and cost of goods.

 

I do know one country NZ that ( XRO, PPH A2M ) but they list on the ASX even some US companies list on the ASX because Australians will invest in low cap tech.

 

Yes, and they are falling over themselves, owning almost 20% of Australian businesses. Note the proportion of funds in agricultural and resources...over 10% of our water is owned by foreign interests. Note the restrictions on release of who actually owns the agricultural land in the 3rd article, with expectations this will increase with changes in disclosure requirements. My question to you is: Do you think these foreign entities are securing these resources so they can provide Australians with food and resource security?

We seem happy to sell everything off for a quick dollar. If our population is expected to rise as predicted, do you think selling off these resources will help or hinder Australia?

In addition, how much value does Australia add to these exports and how much of the profit do we keep?

https://dfat.gov.au/trade/resources...ign-owned-businesses-in-australia-2014-15.pdf

Statistics on who invests in Australia

CHARTS: Here are the top 10 foreign land owners in Australia

China is revealed as the biggest foreign owner of Australian water | Daily Mail Online

 

Bump

Iron ore prices are soaring.... very nice