What if I told you Australia is on track to have the second-largest pension market in the world—bigger than the UK and Canada, trailing only the US? With over $4.1 trillion in super and growing, this should be a golden era for our stock market.

What’s the trade-off for investing offshore?

But here’s the problem: nearly $800 billion of our super is invested in international shares, compared to just $636 billion in Aussie stocks. That’s money leaving our shores instead of fuelling local businesses, innovation, and jobs.

International diversification looks good on paper, but what’s the trade-off? The ASX is missing out on billions—capital that could drive stronger valuations, support more IPOs, and fuel broader economic growth. The upcoming increase in the Superannuation Guarantee to 12 per cent by July 2025 will expand the investment pool even further, creating an even greater opportunity to put more of that money to work at home.

ASIC is asking for submissions to address the problem

Even ASIC Chair Joe Longo has raised concerns about the shrinking number of companies listing on the ASX. If more super stayed local, it would give businesses a stronger reason to go public, boosting the market and giving everyday investors better opportunities.

Right now, ASIC is inviting market participants to submit ideas by April to address these challenges. This is a prime chance to push for policies that direct more super into Australian investments.

Super isn’t just a retirement plan—it’s a national asset so let’s stop handing billions to global markets and start backing our own future.

What are the best and worst-performing sectors this week?

The best-performing sectors included Utilities, up 4.31 per cent, followed by Financials, up 1.89 per cent and Energy, up 0.78 per cent. The worst-performing sectors included Information Technology, down 12.28 per cent, followed by Real Estate, down 5.63 per cent and Materials, down 5.31 per cent. 

The best performing stocks in the ASX top 100 included NIB Holdings, up 12.46 per cent, followed by APA Group, up 11.65 per cent and Medibank Private, up 10.13 per cent. The worst-performing stocks included Viva Energy Group, down 29.30 per cent, followed by Wisetech Global, down 26.46 per cent, and Reece Limited, down 21.41 per cent.

What's next for the Australian stock market?

Sellers remained in control last week as the All Ordinaries extended its slide, dropping over two per cent. The week started with a glimmer of hope as buyers held the index near 8,570 on Monday, but selling pressure soon took over, driving the market below the critical 8,500 level by Thursday. This move also confirms the breakdown of the uptrend line that had been intact since November 2023.

That said, the All Ords isn’t out of the fight just yet. Volatility tends to pick up during reporting season, so it's important to allow for more movement around key technical levels. If selling continues this week, keep an eye on 8,400, a level that has been tested three times since November 2024—each time attracting strong buying and leading to new all-time highs.

For now, patience is key. Reporting season often brings knee-jerk reactions, making it crucial to let the dust settle. If you have room in your portfolio, this pullback could present an opportunity to pick up quality stocks that have been unfairly sold off.

For now, good luck and good trading.

Dale Gillham is the Chief Analyst at Wealth Within and the international bestselling author of How to Beat the Managed Funds by 20%. He is also the author of the bestselling and award-winning book Accelerate Your Wealth—It’s Your Money, Your Choice, which is available in all good bookstores and online.