The Athens Stock Exchange General Index has returned 19% over the last year (but lost 85% since 2007); Australian interest rates are lower than that of the US for the first time in 18 years

The Greek stock market has been one of the best performing markets in the world over the past year. The Athens Stock Exchange General Index has returned 19% over the last year. But it has lost 85% (5334.5 to today’s close at 781.14) in value since October 2007. Yes, 85%. And people say equities are best for the long term. They still sell ETFs for the index in case anyone is interested.

Meanwhile, the Reserve Bank of Australia (RBA) left the official cash rate (interest rate) unchanged at a record low of 1.5% at its April 2018 meeting for a 20th month in a row. The RBA last cut the cash rate in August 2016, following an earlier cut to 1.75% in May 2016. There has not been an official cash rate increase since November 2010.

The US Federal Reserve had its sixth increase in March since it began normalising rates in December 2015. Australian interest rates are lower than that of the US for the first time in 18 years. Further divergence in global interest rate strategy can be expected.

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