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...
Thursday, October 2, 2008
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3 comments:
Adrain, you know or not? how can you say no divrsification? you can reduce to 40, isn't it divesiffiaction?
What 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.
If you had China and Australia you would have a good diversification. the portfolio loss is reduced and outperformed Asia.
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