real and nominal returns by asset class 1900-2009
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Real and nominal returns by asset class
1900-2009
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Important information
Investments that are volatile in the short term... Returns above inflation over 1 year periods (1900 - 2009)
-60%
-40%
-20%
0%
20%
40%
60%
80%
1900
1905
1910
1915
1920
1925
1930
1935
1940
1945
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
Period ended 31 December
% p
a
Australian shares Australian debt securities Australian cash
Source: Calculated by MLC using data presented in DMS Data Module offered through the Morningstar software program EnCorr. Based on copyrighted books by Dimson, Marsh, and Staunton, Triumph of the Optimists, Princeton University Press, (c) 2002, and Global Investment Returns Yearbook 2003, ABN AMRO/London Business School (c) 2003. All rights reserved. Used with permission.
…have produced higher returns over most long periods. Returns above inflation over 20 year periods (1900 - 2009)
-10.0%
-5.0%
0.0%
5.0%
10.0%
15.0%
20.0%
1920
1925
1930
1935
1940
1945
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
2010
Period ended 31 December
% p
a
Australian shares Australian debt securities Australian cash
Source: Calculated by MLC using data presented in DMS Data Module offered through the Morningstar software program EnCorr. Based on copyrighted books by Dimson, Marsh, and Staunton, Triumph of the Optimists, Princeton University Press, (c) 2002, and Global Investment Returns Yearbook 2003, ABN AMRO/London Business School (c) 2003. All rights reserved. Used with permission.
Annual returns of Australian shares1900 – 2009 (nominal)
Source: Calculated by MLC using data presented in DMS Data Module offered through the Morningstar software program EnCorr. Based on copyrighted books by Dimson, Marsh, and Staunton, Triumph of the Optimists, Princeton University Press, (c) 2002, and Global Investment Returns Yearbook 2003, ABN AMRO/London Business School (c) 2003. All rights reserved. Used with permission.
-60.00%
-40.00%
-20.00%
0.00%
20.00%
40.00%
60.00%
80.00%1
90
0
19
05
19
10
19
15
19
20
19
25
19
30
19
35
19
40
19
45
19
50
19
55
19
60
19
65
19
70
19
75
19
80
19
85
19
90
19
95
20
00
20
05
20
10
Year Ending 31 December
Annual returns of global shares ($A hedged)1900 – 2009 (nominal)
Source: Calculated by MLC using data presented in DMS Data Module offered through the Morningstar software program EnCorr. Based on copyrighted books by Dimson, Marsh, and Staunton, Triumph of the Optimists, Princeton University Press, (c) 2002, and Global Investment Returns Yearbook 2003, ABN AMRO/London Business School (c) 2003. All rights reserved. Used with permission.
-50%
-30%
-10%
10%
30%
50%
70%
90%
1900
1905
1910
1915
1920
1925
1930
1935
1940
1945
1950
1955
1960
1965
1970
1975
1980
1985
1990
1995
2000
2005
Year ending 31 December
Value of $100 invested for the last 30 years Values shown are above inflation ie "real returns"
$10
$100
$1,000
$10,000
31/12
/197
9
31/12
/198
4
31/12
/198
9
31/12
/199
4
31/12
/199
9
31/12
/200
4
31/12
/200
9
Australian shares $917
Cash $334
Source: Calculated by MLC using data presented in DMS Data Module offered through the Morningstar software program EnCorr. Based on copyrighted books by Dimson, Marsh, and Staunton, Triumph of the Optimists, Princeton University Press, (c) 2002, and Global Investment Returns Yearbook 2003, ABN AMRO/London Business School (c) 2003. All rights reserved. Used with permission.
Value of $100 invested for the last 60 years Values shown are above inflation ie "real returns"
$1
$10
$100
$1,000
$10,000
31/12
/194
9
31/12
/195
4
31/12
/195
9
31/12
/196
4
31/12
/196
9
31/12
/197
4
31/12
/197
9
31/12
/198
4
31/12
/198
9
31/12
/199
4
31/12
/199
9
31/12
/200
4
31/12
/200
9
Australian shares $3,864
Cash $187
Source: Calculated by MLC using data presented in DMS Data Module offered through the Morningstar software program EnCorr. Based on copyrighted books by Dimson, Marsh, and Staunton, Triumph of the Optimists, Princeton University Press, (c) 2002, and Global Investment Returns Yearbook 2003, ABN AMRO/London Business School (c) 2003. All rights reserved. Used with permission.
Value of $100 invested for the last 110 yearsValues shown are above inflation ie "real returns"
$1
$10
$100
$1,000
$10,000
$100,000
$1,000,000
31/12
/189
9
31/12
/190
4
31/12
/190
9
31/12
/191
4
31/12
/191
9
31/12
/192
4
31/12
/192
9
31/12
/193
4
31/12
/193
9
31/12
/194
4
31/12
/194
9
31/12
/195
4
31/12
/195
9
31/12
/196
4
31/12
/196
9
31/12
/197
4
31/12
/197
9
31/12
/198
4
31/12
/198
9
31/12
/199
4
31/12
/199
9
31/12
/200
4
31/12
/200
9
Australian shares $284,408
Cash $209
Source: Calculated by MLC using data presented in DMS Data Module offered through the Morningstar software program EnCorr. Based on copyrighted books by Dimson, Marsh, and Staunton, Triumph of the Optimists, Princeton University Press, (c) 2002, and Global Investment Returns Yearbook 2003, ABN AMRO/London Business School (c) 2003. All rights reserved. Used with permission.
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