Are You Investing Too Much in Australian Shares?

Australian investors have spent decades being told there are good reasons to keep a big chunk of their money at home.  We've got franking credits, familiar companies, and the big banks and miners.  But what if that old investing playbook is starting to work against you?  Over the past decade, the gap between Australian and US sharemarket returns has been enormous. At the same time, some of the industries creating the most wealth in the world barely exist on the ASX.  And there is another problem Australian investors often overlook: your shares may not be the only part of your financial life already tied to Australia.  So how much Australian exposure is too much?  In this episode, Paul looks at whether the traditional case for owning a large allocation to Australian shares still stacks up, what has changed underneath the headline returns, and whether investors need to start thinking differently about where they build wealth.  Inside this episode:  The decade-long return gap that is getting harder for Australian investors to ignore  Why waiting for Australian shares to look cheap may not give you the answer you expect  The global growth story the ASX gives you surprisingly little access to  One reason your portfolio could be far more exposed to Australia than you realise  Why franking credits may be making this decision more complicated than it needs to be  The investing argument that made sense 20 years ago but is much harder to make today  Why putting more money overseas could actually reduce your risk  What the world's biggest companies can tell us about where future wealth may be created  If Australian shares still make up a big part of your portfolio, this episode may change how you think about what belongs in it.  WONDERING IF YOU'RE TOO HEAVILY INVESTED IN AUSTRALIA?  At Guidance Financial Services, we can help you review your portfolio, understand where you may be overexposed and build an investment strategy that gives you the right mix of Australian and global investments for your goals. Book your appointment here.  WANT TO STAY ACROSS WHAT'S MOVING THE MARKETS?: Subscribe to GainingCHOICE, our weekly email unpacking the key headlines and what to pay attention to.  GOT A FINANCE QUESTION FOR PAUL?: Send it to [email protected], and it could be featured in his Ask an Expert column each Sunday in The Age and Sydney Morning Herald.  You can also find all our links here.  General advice disclaimer