Alliance Partners

Friday, October 22, 2010

Investing in Equities - the next 10 years

I found an amazing graph the other day.... the 2009 Andex Chart for Australian Investors

From Recently Updated

A quick summary of the past 50 years:-

1. Australian Equities have compared well to the rest of the world over the past 60 years, 30 years, 20 years and 10 years.
Since 1950, $100 invested in shares would have generated $84,598

2. Australian Population - since 1950, the population has increased from 8m to 212m, with life expectancies of both men and women increasing by 13 years... Males 79 and Females 83.

3. Australian Shares have compared well with other asset classes (12.6% pa over 30 years.

From Recently Updated

4. Since 1980, $100 invested would have generated $2,414, majorly outperforming the CPI
From Recently Updated

5. Since 1970 $100 invested would have generated $5,500. Australia represented 2.1% of Capitalisation of World Markets, China 5%, Europe and USA 62%. My view is the pie will change substantially over the next 30 years, with China and India being significant contributors.

From Recently Updated

6. The Aussie $ has hit parity to the US$ since being floated in 1982.

7. The markets have shat themselves during the Whitlam years and Rudd years of Government. Menzies, Frazer, Hawke, Keating and Howard were good for the Economy.

Observations:-

1. Events will affect markets... but over the long term, markets will rise... Invest regularly and over a long period of time...

2. After a downturn, there is usually a sustained period of growth.... We are in a good position at the moment.

3. Australia is well placed for growth over the next 30 years.... Growth in Population is good

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