Two reasons foreign investors continue to like the Australian share market

In recent weeks we have been making the point that we believe the market can maintain its current valuation rating, even though it is high by historical standards, due to low interest rates and high liquidity. It is worth noting that we are seeing evidence of this liquidity in the form of foreign demand for Australian equities. Why? 1. The significant depreciation of the Australian dollar - Foreign investors have had some reticence towards Australian equities in recent years on concerns that the currency was over-valued and ripe for correction. Now this hurdle has been removed. 2. The attractive dividend yield - The Australian market currently provides 4.4% yield, versus 2.5% for the MSCI World. Click here for more from Portfolio Specialist Chris Adams (VIEW LINK)