The Australian equity market has returned an average of 13.2% per year from 1900 to 2021 according to the updated chart from MarketIndex. This return denotes total return – that is with dividends reinvested. Another fact to be pointed out is in the past 122 years, positive return years outperformed the number of years when returns were negative. This shows the importance of long-term investing and time in the market.
During the Global Financial Crisis (GFC) in 2008 the market declined by over 40%. However since then there were only 2 years with negative returns.
The following graphic shows the historical annual returns of Australian stocks from 1990 thru 2021:
Click to enlarge
Source: MarketIndex
Notes:
- The returns shown above are total returns (i.e. share price returns + dividends)
- The returns shown are in the local currency
- The returns are for the All Ordinaries Index
Related ETF:
- iShares MSCI Australia ETF (EWA)
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Disclosure: No Positions
