NZ Herald article statistics show market failing to produce solid and consistent returns for investors as property prices soar.
It’s the lost decade – the 10 years in which the Australian share market has moved sideways.
When the sharemarket closed on Friday February 10, 2006, the benchmark S&P/ASX200 index was sitting at 4871.50. Last Friday, it close at 4765.30. That means a loss of 2.2 per cent over the decade.
It’s a sobering statistic for those who argue that shares produce solid and consistent returns over the long run.
Of course, it’s been an unusual decade. First, shares were hit by the global financial crisis then over the past few months they’ve suffered the latest bout of market jiggers as investors around the world worry about the strength of China, the banks and global growth.
Anyone who had put money into the market, say 11 years ago, would be ahead by about 8 per cent.