Pete Wargent blogspot

CEO AllenWargent Property Buyers, & WargentAdvisory (institutional). 6 x finance author.

'Huge fan of your work. Very impressive!' - Scott Pape, The Barefoot Investor, Australia's #1 bestseller.

'Must-read, must-follow, one of the finest analysts in Australia' - Stephen Koukoulas, ex-Senior Economics Adviser to Prime Minister Gillard.

'One of Australia's brightest financial minds, must-follow for accurate & in-depth analysis' - David Scutt, Business Insider.

'I've been investing 40 years yet still learn new concepts from Pete; one of the finest young commentators' - Michael Yardney, Amazon #1 bestseller.

'The most knowledgeable person on Aussie real estate - loads of good data & charts...most comprehensive analyst I follow in Oz' - Jonathan Tepper, Variant Perception, 2 x NYT bestseller.

Thursday, 17 March 2016

Flat as a tack

Flat

The ASX 200 (XJO) closed up by 7.6 points or 0.149 per cent yesterday at 5119.000.

There's a neat symmetry to the chart, since it is thirteen days shy of one decade since the XJO broke through 5,100 for the first time. 


Source: ASX

Over the ten years since that time Australian stocks have been through a boom, a bust, and a recovery, right back to where they started. 

Since around 2009 the stock market benchmark has been held back by a dreadful performance from the resources index, while financial and other sectors have continued to fare relatively well.

The XJO has returned about 4.6 per cent per annum from dividends over the last decade.

Assuming no transaction costs and an investment in "the index", these annualised returns would have turned a $10,000 investment into approximately $15,680 over the course of the decade.