Albert Einstein said “Compound interest is the eighth wonder of the world”. Compounding of interest over many years will lead to multiplication of the original principal or capital many times. The following example shows the power of compounding for various Australian asset classes: Click to enlarge Source: Five great charts on investing, AMP Capital From the above article: …
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Some of the important facts of the economy of Australia is shown in the infographic below. The top three destinations for Australian exports are China, Japan and the US. The top three exports are Iron Ore, Coal and Education. The presence of the education sector as one of the largest exports is surprising. Though Australian universities are attracting …
The benchmark index of the Australian equity market is the S&P/ASX 200 Index. It measures the performance of the 200 largest stocks listed on the Australian Stock Exchange (ASX) by float-adjusted market capitalization. Since Australia is a commodity-based economy, resources form the largest sector in the index. After natural resources, the highest number of companies …
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The 124 historical returns from 1900 to 2023 of the Australian stock market is shown in the chart below. The average annual return was 13.0%. In addition, for the majority of the years shown Aussie stocks earned a positive return. In 2023, the market had a return of 13%. For the latest chart click: Average …
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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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