deListed and InvestoGain acknowledge the support of ASX and ASA:

Returns by asset class 1979-2010

The first thing to remember about returns data, is that it shows average returns. Obviously for everyone who does better than average there is someone below average. In the share market two thirds of professional investors and 80% of private investors fail to beat the market each year.

The second point is that you can be losing money for a year or two or even ten.

So don’t get too carried away by the returns that are paraded in front of you. Only favourable numbers are selected for publication.

The annual returns reflected in the following chart include capital and income and assume all income is reinvested.

RETURNS BY ASSET CLASS 1979-2010 (showing percentage returns)
Year	Aust	Intl	Intl.	US	Aust	Intl.	Cash	Aust	Intl.	Aust
	Shares	Shares	Shares	Shares	Bonds	Bonds		Listed	Listed	Resid
			Hedged			Hedged		Prop	Prop	Prop
1979	26.0	17.2	12.5	16.3	0.5		10.0
1980	74.3	11.5	13.3	13.6	1.2		11.5
1981	15.8	13.0	20.4	21.6	2.3		14.1	24.6
1982	29.0	4.0	10.4	0.6	5.1		18.1	3.6
1983	34.7	72.7	49.6	88.4	25.6		15.5	23.7
1984	13.5	2.3	2.0	3.2	21.4		12.6	35.3
1985	36.5	61.6	29.9	69.5	17.0		14.0	11.8
1986	42.5	55.2	34.5	33.5	20.5	29.2	18.3	23.8
1987	54.0	32.6	33.2	17.7	12.1	17.6	17.3	41.3
1988	8.6	10.0	5.3	15.5	19.4	12.5	12.5	2.8		17.2
1989	3.5	18.1	18.3	26.7	3.0	16.3	15.7	1.1		33.1
1990	4.1	1.9	5.3	11.5	17.8	13.1	18.5	15.2		1.7
1991	5.9	2.0	5.8	10.3	22.4	15.3	13.5	7.7	15.9	0.8
1992	13.3	7.1	3.0	16.3	22.0	15.8	9.0	14.7	6.9	2.7
1993	9.9	31.8	17.3	26.6	13.9	14.7	5.9	17.1	28.3	2.7
1994	18.5	0.0	6.7	6.5	1.1	2.1	4.9	9.8	8.4	3.4
1995	5.7	14.2	3.7	30.0	11.9	13.1	7.1	7.9	7.5	1.4
1996	15.8	6.7	27.7	12.9	9.5	11.2	7.8	3.6	2.4	1.1
1997	26.6	28.6	26.0	42.6	16.8	12.1	6.8	28.5	35.7	2.8
1998	1.6	42.2	22.1	58.2	10.9	11.0	5.1	10.0	25.0	8.7
1999	15.3	8.2	15.9	14.2	3.3	5.5	5.0	4.3	6.8	5.8
2000	13.7	23.8	12.6	18.2	6.2	5.0	5.6	12.1	14.1	9.7
2001	8.8	6.0	16.0	0.5	7.4	9.0	6.1	14.1	38.2	8.2
2002	4.5	23.5	19.3	26.3	6.2	8.0	4.7	15.5	7.5	20.2
2003	1.1	18.5	6.2	15.2	9.8	12.2	5.0	12.1	5.2	16.8
2004	22.4	19.4	20.2	15.4	2.3	3.5	5.3	17.2	28.7	8.7
2005	24.7	0.1	9.8	4.1	7.8	12.3	5.6	18.1	21.2	1.9
2006	24.2	19.9	15.0	11.6	3.4	1.2	5.8	18.0	24.2	7.3
2007	30.3	7.8	21.4	5.6	4.0	5.2	6.4	25.9	3.0	10.1
2008	12.1	21.3	15.7	23.4	4.4	8.7	7.4	36.3	28.6	8
2009	22.1	16.3	26.6	12.5	10.8	11.5	5.5	42.3	31.2	-0.7
2010	13.8	5.2	11.5	8.9	7.6	9.3	3.9	20.4	31.3	N/A
Last 30 yrs	12.6	12.4	9.8	14.4	10.5	11.0	9.4	11.8	N/A	7.5
Last 20 yrs	10.5	6.4	5.9	9.2	9.0	9.3	6.3	8.9	9.7	6.0
Last 10 yrs	8.4	3.3	0.6	4.0	6.4	8.1	5.6	6.3	8.9	8.1
						25 years				23 years
										9 years

Returns do not take account of the benefit of franking credits nor of the negative impact of capital gains tax or fees. With regard to residential property it should be noted that the effect of rental income, improvements and capital gains tax are not recognised.

Note declining returns over the last 30 years in almost every asset class except Australian residential property (perhaps overdue for an adjustment!!).

FURTHER READING:

Long Term Investing Report (June 2011) - Russell Investments

Investigate before you invest again to InvestoGain

We.....

Thank you for the wonderful service you provide through your website. I've had the pleasure of selling a parcel of shares: easy, efficient, and very cost-effective. And I especially like the super-easy way your site allows me to chase up companies' various name changes, and so remain up-to-date.
I Brandli, Coffs Harbour NSW

…out of all the exchanges that I do research for, your particular web site makes finding information so easy. I wish the rest of the world would follow your footsteps. Reuters

Thank you so much for assisting with this. I contacted the registry today and they did confirm there are …… shares [value: $42,000] in my sister’s name. I have put ......... in contact with them so she can update her address and will thereafter be able to claim the dividends [value: $3764] and sell her shares if she chooses. We really appreciate your help, this money will be of huge assistance to ..... What a fantastic service you provide.