Although finishing with a small loss of 2.6% in May, the Aussie sharemarket continues to outperform the US and most other advanced economy sharemarkets. In price terms, the benchmark S&P/ASX 200 has lost 3.1% since the start of the year to close the month at 7211. Add back dividends received and the loss narrows to 1.3%.

But in the US, the tech-heavy NASDAQ has shed 22.8% while the broader S&P 500 is down 13.3% in 2022. The Dow Jones, which measures the performance of a basket of 30 stocks, has lost 9.2%. Interestingly, both the Dow Jones and S&P 500 crawled into the black in May.

So where is the relative “outperformance” coming from?

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