Information You won’t get from Unlicensed Accountants #84
Australian Superannuation to test Capacity of the ASX over next 20 Years.
According to ASX forecasts, if Australian superannuation maintains similar asset allocations and the super guarantee continues to increase to 12%, Australian superannuation will own 60% of the ASX by 2038 (as compared to 35% currently).
This will significantly test the ASX’s capacity where super is also competing on the ASX with non super money from individuals and companies. As a result it is likely to force Australian Superannuation fund managers to increase their allocation to other asset classes such as International shares.
The positive thing to come from this is that it will provide even greater diversification for Australian Superannuants as the ASX only makes up approximately 2% of world share market capitalisation.
“Keep on going and the chances are you will stumble on something, perhaps when you are least expecting it. I have never heard of anyone stumbling on something sitting down.” – Charles F Kettering.