Just to take a look at the major indexes in Asia over the past 1 year from the peak in 2007 to the current lowest point in 2008.
* Singapore Straits Times Index
3,906 - 2,239 (Dropped 42.68%)
* Hong Kong Hang Seng Index
31,958 - 16,283 (Dropped 49.05%)
* China Shanghai Composite
6,124 - 1,802 (Dropped 70.57%)
* India BSE Sensex
21,206 - 12,153 (Dropped 42.69%)
* Japan Nikkei 225
17,489 - 11,155 (Dropped 36.22%)
* Korea Kopsi
2,085 - 1,367 (Dropped 34.44%)
* Taiwan TSEC Weighted Index
9,860 - 5,530 (Dropped 43.92%)
* Malaysia KLSE Composite
1,525 - 963 (Dropped 36.85%)
* Thailand SET 50 Index
681 - 415 (Dropped 39.06%)
* Indonesia Jarkarta Composite
2,838 - 1,592 (Dropped 43.90%)
* Philippines PSEi Index
3,776 - 2,352 (Dropped 37.6%)
* Vietnam VNIndex
1,158 - 370 (Dropped 68.05%)
* Australia All Ordinaries
6,873 - 4,569 (Dropped 32.21%)
* New Zealand NZX 50 Index Gross
4,334 - 3,001 (Dropped 30.76%)
From the highest point in 2007 to the lowest point in 2008, there was a drop of around 40% for all major Asia Indexes with exception of China and Vietnam of nearly 70% drop.
Wide Diversification of many countries in an Asia fund don't seems to help reduce risk in a bear market like now.
Will go into US and Europe in my next posting...
Adrain, you know or not? how can you say no divrsification? you can reduce to 40, isn't it divesiffiaction?
ReplyDeleteWhat I mean is that they drop altogether and by somehow same magnitude. Not much difference if I had invested into a diversified Asia fund than if I had invested into A Singapapore/Malaysia Fund.
ReplyDeleteIf you had China and Australia you would have a good diversification. the portfolio loss is reduced and outperformed Asia.
ReplyDelete