Annual share market returns are unpredictable, but “up “years have occurred much more frequently than “down “years in Australia. That may be reassuring to investors, especially if they find market downturns unsettling.
- The Australian share market posted positive returns in 74% of the calendar years from 1980 through 2021.
- The market gained an annualised average of 11.1% during this period. Yet nearly two thirds of yearly observations were at least 10 percentage points above or below the average.
- Another noteworthy trend: More than 90% of the down years were followed by up years. The most recent example: a 3.1% loss in 2018 followed by a 23.8% gain in 2019.
The share market tends to reward investors who can weather annual ups and downs and stay committed to a long-term plan.
Past performance is no guarantee of future results. Investing risks include loss of principal and fluctuating value. There is no guarantee an investment strategy will be successful. Indices are not available for direct investment. Their performance does not reflect the expenses associated with the management of an actual portfolio. In AUD. S&P/ASX data copyright 2022 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved.
Next steps
If you have any questions/thoughts in relation to this article or would like more information, please contact Gordon Thoms or David Conte at Calibre Private Wealth Advisers on ph. (03) 9824 2777 or email us here.
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