Market Metrics: Volatility and Income The first chart (Firgure1: All Ordinaries) shows us that a 20% fall in stock prices is normal and it actually occurs with regular monotony. What is not normal is a 55.58% fall in stock prices. The second chart (The Power of Payouts) shows us that if you invest in quality companies that pay a dividend then two thirds of the total return is delivered form the actual dividend payment. So let me ask, what is the message in these two charts and two stories? The message is that when investing in growth assets such as listed companies, you should always invest for the long term to maximise total return and you should always be looking to invest into more quality growth assets when the inevitable fall occurs. At Newealth we are always looking to innovate and improve our onging services wherever possible and if you have any ideas or comments, please feel free to email me via ‘Contact Us’ at www.newealth.com.au or to call me on +61 2 9267 2322.
25th-November-2009 | 
