From Richard Coppleson at Goldman Sachs: Foreign institutional investors are pulling their money out of Australia at a rapid rate of knots

From Richard Coppleson at Goldman Sachs: Foreign institutional investors are pulling their money out of Australia at a rapid rate of knots. The biggest influence has been the 5.80% fall in the Australian Dollar over the last 45 days and they think the $A is going a lot lower. There's limited economic growth (ongoing GDP downgrades), limited earnings growth (plenty of earnings downgrades of late), a declining fiscal position (as yesterdays' MYEFO showed), a new Government that has been criticized in the press for failing to do enough in its 'first 100 days' and increasing bond rates. It seems to me that foreigners are taking a pretty dim view of events in Oz over the past 6 or so months, their selling had a real string to it & has caused us to severely underperform the US.