The Australian stock market as measured by the The ASX All Ords index has returned 13% per year for the duration from 1900 to 2023 according to the updated chart from ASX. This return indicates total return which includes dividends reinvested. Of course, no investor invests for such a long term. However the key point to remember from such charts is the importance of investing for the long-term which can mean different time for investors depending on their risk tolerance. It can be as low as 5 years to a few decades.
Australian stocks have generated positive returns in 100 of the 124 years as shown in the chart below. To put it another way that is 81% of the time from 1900 to 2023.
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Source: ASX via Why I’m a perma-bull on stocks by James Gruber, Firstlinks
James also noted another fascinating fact in the above article. If an investor holds stocks for seven years or longer, the chances of earning a positive return in Australia and other global markets is nearly 100%.
The following table shows the Annual Total Returns of Australian Stock Market from 1900 to 2023:
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Source: Market Index
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Related ETFs and ADRs:
- iShares MSCI Australia ETF (EWA)
- The Complete List of Australian ADRs
Disclosure: No positions
