The ALL ORDINARIES (ASX: XAO) has had one of its best years in recent memory despite a number of bumps along the way. After the last trading day of the year it was up 9% over the last 12 months, not including dividends.
This performance was despite the big banks coming under fire during the Royal Commission. Commonwealth Bank of Australia (ASX: CBA) was down 12% over the year, Westpac Banking Corp (ASX: WBC) dropped 4%, Australia and New Zealand Banking Group (ASX: ANZ) fell by 2% and National Australia Bank Ltd (ASX: NAB) declined by 7%.
One of the main drivers of the index’s performance over the past year was commodity prices rising. This had a big effect on BHP Billiton Limited (ASX: BHP) which went up by 46%, Woodside Petroleum Limited (ASX: WPL) increased by 20% and Rio Tinto Limited (ASX: RIO) grew by 32%.
One of the main stories this year was that Australian blue-chips with foreign earnings were particularly strong performers with CSL Limited (ASX: CSL) up by 40%, Macquarie Group Ltd (ASX: MQG) up by 40% too, Cochlear Limited (ASX: COH) up by 29% and ResMed Inc. (CHESS) (ASX: RMD) up by 40% as well.
The other main story was that mid-cap growth stars aren’t stopping growing any time soon. Altium Limited (ASX: ALU) was up 162%, a2 Milk Company Ltd (ASX: A2M) increased by 180%, WiseTech Global Ltd (ASX: WTC) went up 126% and Xero Limited (ASX: XRO) went up 86%.
The ASX may have another solid year if resource prices climb further, the banks put the Royal Commission behind them and Telstra Corporation Ltd (ASX: TLS) can put its 5G woes behind it.
However, I think the best place for your money on the ASX is in mid-cap growth shares.
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Motley Fool contributor Tristan Harrison owns shares of Altium. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of A2 Milk, Altium, National Australia Bank Limited, WiseTech Global, and Xero. The Motley Fool Australia has recommended Cochlear Ltd. and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.