Australian All Ordinaries Index The attached chart shows you the annual performance for the All Ordinaries Index (Blended) from 1876 to 2008. You can from the chart that 2008 was an abnormal year in both an absolute and historical sense, suggesting this is unlikely to be repeated any time soon. What this means for the calculating investor is that if it takes the Australian share market 5 years to recover, the average rate of return will be 15.5% per annum (not including dividends) which is significantly higher than the current return investors are receiving from cash. To quote Muhtar Kent, President and Chief Executive Officer of The Coca-Cola Company, “…Despite the current economic tsunami, what we see is a great future for our business because no matter which way you slice and dice, between now and 2020 there will be another billion people who become urbanised, and there’s going to be another billion people joining the middle class. And that translates into a huge opportunity…” At Newealth we are always looking to innovate and improve our ongoing advice and services wherever possible and if you have any ideas or comments, please feel free to email me at invest@newealth.com.au or to call me on +61 2 9267 2322.
12th-March-2009 | 
