In case you missed it in the media hype of the festive season, the last set of annual financial numbers put out by the Australian Bureau of Statistics (ABS) painted an incredible picture. They showed 2009 had been a year of excellent recovery in everything that matters. Overall, the statistics reveal the all important growth in household wealth had been the strongest for a generation. The ABS attributes most of the recovery to the lift in stock markets, house prices and super funds.

While the ABS statistics in late December contained a number of very interesting facts, one which has escaped media scrutiny is that foreign investors now account for 40 percent of Australian shares, up from 30 percent a few years ago. Clearly investors with access to cheap money have used it as part of upward pressure on values. But to keep perspective on where prices really sit, our stock market is still 30 percent below its 2007 peak.