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Speaker 1: Welcome to Ask Fear and Greed, where we take your

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Speaker 1: questions and do our very best to answer them. I'm

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Speaker 1: Michael Thompson and good afternoon, Shaw Nailmer.

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Speaker 2: Good afternoon, Michael Sean.

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Speaker 1: Today's question comes from Charlotte on Instagram, and there's multiple

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Speaker 1: ways to get in tup to this LinkedIn Facebook by

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Speaker 1: our website Fearangreed dot com. Today you Charlotte has chosen

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Speaker 1: Instagram and I like this question. This is my kind

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Speaker 1: of question, she says, High Team Fear and Greed. Some

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Speaker 1: news reports cover the markets by talking about the ASX

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Speaker 1: two hundred, but others focus on the all odds. What's

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Speaker 1: the difference? And she goes on to say it feel

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Speaker 1: free to ignore if this is too simplistic. Nothing is

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Speaker 1: ever too.

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Speaker 2: And I bet the majority of people listening probably couldn't

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Speaker 2: answer this question exactly.

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Speaker 1: And it's one of those terms, isn't it that you

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Speaker 1: just kind of hear so often? And that's why that's

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Speaker 1: that's what I actually really like about this podcast, Asphear

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Speaker 1: and Greed is it's an opportunity to kind of just

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Speaker 1: explain a little bit of the everyday jargon that everyone

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Speaker 1: assumes that everyone knows but if you put them on

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Speaker 1: the spot and asks them to explain, it may not

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Speaker 1: be able to do it. So Sean putting her on

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Speaker 1: the spot, please.

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Speaker 2: Explain, Please explain. So the All Ordinaries is actually the

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Speaker 2: oldest share index in Australia. I think nineteen sixty it

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Speaker 2: came about. It's the top. It tracks the top five

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Speaker 2: hundred companies listed on the AX by market value, so

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Speaker 2: very very broad. The ASEX two hundred tracks the top

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Speaker 2: two hundred companies on the AAX. Obviously, the All Ordinaries

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Speaker 2: Index is going to be bigger because it's sort of

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Speaker 2: the five hundred against the two hundred. Having said that,

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Speaker 2: the ASEX two hundred really the reason we talk about

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Speaker 2: it is most of the moves happen in that ASEX

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Speaker 2: two hundred. If you're a company that's three or four

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Speaker 2: hundredth on the list, there's not a lot of trading

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Speaker 2: that goes on. It does introduce another concept, which is

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Speaker 2: worth mentioning the All Ordinaries or the ASEX Total Return Index,

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Speaker 2: and that doesn't just include share prices, It actually includes

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Speaker 2: dividends as well. So when you here at total return,

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Speaker 2: you're actually not just talking about whether the stock went

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Speaker 2: from a dollar fifty to two dollars. It's also all

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Speaker 2: those dividends that have been added in the middle of it,

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Speaker 2: if you I mean, so what you see in the

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Speaker 2: market at the moment. So if you take the all

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Speaker 2: ordinaries this year, it's up about nine point four percent,

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Speaker 2: whereas the ASEX two hundreds up nine point seven percent.

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Speaker 2: So they broadly match each other broadly, though, because the

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Speaker 2: large caps, the banks and that have done really well,

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Speaker 2: the AX two hundred has sort of outperformed the all ordinaries.

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Speaker 2: You know, we talk on Wall Street, we talk about Nasdaq,

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Speaker 2: which is like tech focus, we talk the Dow Jones

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Speaker 2: and Ustrial average is actually the top thirty companies, the

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Speaker 2: S and P five hundred, which is the five hundred companies.

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Speaker 2: They've all sorts of indexes around the place, but that's

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Speaker 2: broadly what it is.

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Speaker 1: Okay, So there's about two thousand companies listed aren't there

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Speaker 1: on the on.

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Speaker 2: The that's right thereabouts thereabouts.

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Speaker 1: So this is the all odds is effectively tracking the

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Speaker 1: top quarter.

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Speaker 2: In terms of number, but in terms of actual value

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Speaker 2: in the market, it's probably ninety nine points something percent.

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Speaker 1: Yeah, and this is my point that it's really kind

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Speaker 1: of almost it's it's twenty five percent in terms of

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Speaker 1: just the number of companies, but really it's it's it's

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Speaker 1: kind of synonymous with the whole market overall.

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Speaker 2: Right, Yeah, that's exactly right. But the ASEX two hundred,

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Speaker 2: I don't have the number in front of me, but

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Speaker 2: that would be well over ninety percent of market cap,

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Speaker 2: maybe ninety five ninety six percent of market cap?

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Speaker 1: Okay, all right, So does that mean then that based

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Speaker 1: on because the market is relatively small in Australia, you

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Speaker 1: really only need to look at the ASEX two hundred

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Speaker 1: to get a very clear idea of what's going on.

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Speaker 2: Right, Yeah, that's right. I mean what you find when

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Speaker 2: you get to like companies in the two hundreds, three hundreds,

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Speaker 2: four hundreds are small, very liquid, They can have some

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Speaker 2: massive share price in its. They like all sorts of things,

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Speaker 2: because if one investor decides to buy or one investor

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Speaker 2: decides to sell, the share price goes a long way.

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Speaker 2: And so I suppose maybe we should introduce the all

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Speaker 2: ordinaries because it is a broader measure. I know, I'm

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Speaker 2: just so used to the ASEX two hundred, Michael, I

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Speaker 2: think I'm in trouble.

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Speaker 1: Here as a journalist, as a business journalist, when you

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Speaker 1: get to some of those smaller companies, the small caps,

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Speaker 1: the microcaps, right, did you kind of ever just go

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Speaker 1: kind of fishing around for stories in amongst there, because

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Speaker 1: you say that there can be these massive kind of

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Speaker 1: swings right in share prices and there could be some

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Speaker 1: fascinating stories behind those ones.

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Speaker 2: Right, Fantastic stories, absolutely fantastic. I mean generally the you know,

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Speaker 2: they're not really investable or some of them uninvestable, so

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Speaker 2: maybe they weren't didn't suit the publications I were writing in.

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Speaker 2: But some of the stories are just unreal.

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Speaker 1: Yeah. Yeah, and get some good kind of personality kind

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Speaker 1: of things as well. Fine, of it's just yeah, it's anyway,

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Speaker 1: maybe that's something that we can look into as well.

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Speaker 1: Maybe you can do a microcap story of the day.

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Speaker 2: Yes, I love how idea.

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Speaker 1: I'm giving you more work here. Have you noticed this?

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Speaker 2: I notice it's.

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Speaker 1: Another bonus podcast for you, Sean. Anyway, look, Charlotte, I reckon,

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Speaker 1: we've answered that again.

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Speaker 2: Marking us.

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Speaker 1: Let's say out of thirty, let's say twenty four out

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Speaker 1: of thirty.

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Speaker 2: Well out of five hundred, really, or out of two hundred.

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Speaker 2: It should be one or the other.

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Speaker 1: Okay, well, let's pick out a five hundred. If we

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Speaker 1: were to treat ourselves as the lords, I'd say four

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Speaker 1: hundred and ninety.

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Speaker 2: You are generous.

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Speaker 1: I'm very generous anyway. Thank you very much, as Charlotte

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Speaker 1: for your question, and thank you Sean for answering it.

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Speaker 2: Thank you Charlotte, Thank you Michael.

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Speaker 1: If you have your own question that you would like

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Speaker 1: us to answer, please send it on through via Instagram

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Speaker 1: like Charlotte did, or head along to LinkedIn or Facebook

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Speaker 1: or fearangreed dot com. Donate you and send it through

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Speaker 1: the website. I'm Michael Thompson and this is ask Fear

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Speaker 1: and Greed