The latest podcast has been uploaded onto the website and looks at long term investment and economic trands as reported in the Australian Financial Review on the 14th of February. The following table is referred to in the podcast.
Long Term Investment and Economic Trends
(Decade average yearly returns)
|
Decade |
Inflation |
Economic Growth - Above Inflation
(e.g. during the 1910's economic growth was 6.7%; which after inflation of 5.6% is real growth of 1.1%) |
Cash Return |
House Price Returns (growth in value plus rent) |
Share market Returns (growth in value plus dividends - does not include the value of franking credits) |
|
1910's |
5.6% |
1.1% |
4.8% |
Not Avail. |
9.7% |
|
1920's |
-1.6% |
0.8% |
5.9% |
Not Avail. |
15.4% |
|
1930's |
1.5% |
3.6% |
4.1% |
4.2% |
10.2% |
|
1940's |
8.0% |
3.5% |
3.2% |
7.8% |
10.1% |
|
1950's |
3.9% |
3.7% |
4.5% |
16.1% |
15.3% |
|
1960's |
3.1% |
5.3% |
5.0% |
15% |
14.0% |
|
1970's |
10.5% |
3.0% |
8.9% |
16.2% |
8.6% |
|
1980's |
8.0% |
3.0% |
13.5% |
15.8% |
17.7% |
|
1990's |
2.5% |
3.3% |
8.5% |
6% |
11.0% |
|
2000's
(to end 2008) |
3.3% |
3.2% |
5.7% |
10.8% |
6.0% |
|
AVERAGE |
4.48% |
3.05% |
6.41% |
11.49% |
11.80% |
Source: Australian Financial Review 14/15 Feb 2009 and AMP
For more information please listen to the podcast - Long Term Investment and EconomicTrends.
Regards,
Scott Keefer
