A blog after a long time - 8 years I think!
I tried to put to test the theory that equity / stock market investment gives outsized returns over a longer duration (5years - 10 years or more).
Quite suprising returns, but again not so surprising - there are returns but not as outsized as made out to be.
Arbitrarily, I took 03-Mar-2000 as the starting date, and have compared returns for just under 19 years - till this last Friday (17-Feb-2019).
Interesting points:
France (CAC) is actually negative after 19 years! and most European markets have at best anaemic CAGR. Interestingly, US and India seemed to have given decent returns.
Disclaimer:
1. Does not take into account dividend payments
2. Is measured in local currency, so inflation, interest rates and currency exchange rates have an impact.
But I would have expected something ~8% CAGR for developed markets (Most pension funds use that statistic for computation and to entice you to invest in their funds). And somewhere ~15%+ for developing markets. No market of all those covered, lived up to those.
(Source: Google finance and index websites to find the prices on each of the days)
#EquityReturns #equity #globalstockmarkets#notsogreatreturns
I tried to put to test the theory that equity / stock market investment gives outsized returns over a longer duration (5years - 10 years or more).
Quite suprising returns, but again not so surprising - there are returns but not as outsized as made out to be.
Arbitrarily, I took 03-Mar-2000 as the starting date, and have compared returns for just under 19 years - till this last Friday (17-Feb-2019).
Interesting points:
France (CAC) is actually negative after 19 years! and most European markets have at best anaemic CAGR. Interestingly, US and India seemed to have given decent returns.
Disclaimer:
1. Does not take into account dividend payments
2. Is measured in local currency, so inflation, interest rates and currency exchange rates have an impact.
But I would have expected something ~8% CAGR for developed markets (Most pension funds use that statistic for computation and to entice you to invest in their funds). And somewhere ~15%+ for developing markets. No market of all those covered, lived up to those.
(Source: Google finance and index websites to find the prices on each of the days)
#EquityReturns #equity #globalstockmarkets#notsogreatreturns
