Financial experts are divided on the immediate future of the Australian sharemarket. The All Ordinaries is still languishing 16 per cent below its 2007 peak, as overseas sharemarket soar to record levels.

This, along with the sliding dollar, has seen many investors ship their investment dollars off-shore; making any recovery even more difficult.

Scott Schuberg, Chief Executive of Rivkin Financial Services, believed said, “If we were in a normal market, these stocks would be up 40 per cent or so. It seems like a huge move, but we came from such a defensive environment.”

He was speaking about the low interest rates encouraging investors and super funds to invest in local shares; which have, to date under performed.

“I think it (the underperformance) will be sustained, but I don’t think it can go too much longer.”

Craig James, Chief executive of CommSec, believed shares were still rebounding from their GFC levels in 2008/9.

Contrary of Mr Schuberg, he was optimistic about the Australian sharemarket.

Mr James was prepared to predict a return of 9-10 per cent a year (including dividends) from well-run companies in good shape.

“You may not shoot the lights out, but you will sleep well at night. If you follow strong companies with a degree of market dominance and have been consistent performers with good management. They come through the tough times better than anyone else.”

Their comments come as Australian giants such as Telstra, the commonwealth bank, Harvey Norman, flight centre and Westpac post astounding profits. If these companies are so well-off then why isn’t that profit being seen by the investors?

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