Performance of Australian vs. Global Stocks Over The Past 30 years

The Australian equity market is one of the best markets in the world for long-term returns. The latest Credit Suisse Global Investment Returns Yearbook 2021 showed that Australian stock yielded a total of 6.8% per year in US Dollar terms since 1,900 topping all other countries. Strong fundamentals, transparency, good governance, political stability, excellent dividend payout …

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Checking on the Four Major Australian Banks

The four major Australian banks – Commonwealth Bank of Australia, Westpac, Australia and New Zealand Banking Group and National Australia Bank – have had a tough past few years. With most of the troubles over, some of these stocks are in recovery mode from the hard and deep slump. Let’s take a quick look at the performance so far this …

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Time in the Market is More Important Than Timing the Market

In order to be successful with investing in equities it is important to note that time in the market is more important than simply timing the market. Despite many ups and downs staying invested during all times is the wise strategy. Any investor that tries to get in and out of the market at opportune …

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Bull and Bear Market Impact on Returns – An Australian Example

How do Bull and Bear Markets impact returns? The following chart shows the impacts based on three contribution strategies from an Australian perspective. The returns are from 1980 thru the end of June, 2020. Consistent monthly contributions yielded the highest return than a single one-time lump sum payment. Similar to the US market, the chart …

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Australian Bull and Bear Markets Since 1970: Chart

Stocks tend to earn higher returns relative to other assets over the long-term. This is because despite corrections and bear markets that can occur on a regular basis, over many years stocks go up more than they go down. To put it another way bull market returns are higher than bear market declines most times. …

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