The Historical Average Annual Returns of Australian Stock Market Since 1900

Australia is one of the top-performing equity market especially in the long run. As a developed country Australia offers many of the advantages of a typical developed market such as transparency and the rule of law. Investors looking to diversify by holding international stocks should consider Aussie stocks. This is because not only they have …

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Comparing the Performance of Australian vs. Global Stocks

Australian stocks have rebounded sharply in the past few months as commodity markets have recovered. In terms of equity market performance since the Global Financial Crisis of 2008-09 thru last year, Australian stocks have under-performed the US market as measured by the S&P 500 index as shown in the chart below: Click to enlarge   …

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Household Savings Rate: U.S. vs. Australia

The savings rate in Australia is much higher than the U.S. rate. In the U.S., the Personal Saving Rate stood at just 6.0% as of October, 2016. This rate is the same as the household savings rate in Australia. Click to enlarge U.S. Personal Saving Rate: Source: Federal Reserve of St.Louis In the 60s and 70s, …

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Australia has the Fifth Highest Debt-to-Disposable Income Globally

Households in Australia have high debt levels compared to historical figures. According to the latest OECD data available, Australia’s debt-to-net-disposable-income ratio now stands at 206% and is the fifth-highest in the world as shown in the chart below: Click to enlarge Source: Is Australia’s luck running out? by Robin Parbrook, Schroder’s Extended high debt together with over …

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ASX All Ordinaries PE Ratio and Dividend Yield Since 1980

Australian stocks have high dividend yields compared to US stocks. Investors starved for income should consider investing in Australia not only for the high yields but also for their dividend stability and potential price appreciation. Historically Australian firms have had generous dividend payout policies and many firms did not cut or reduce dividends during the …

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