I came across an article in the Australian Financial Review on 20 October 2012. It was titled More gains ahead as All Ord’s Tears Up the Charts. I thought I would provide you with some exerts for you to ponder:
- “The All Ords Accumulation index (which includes dividends) is still at about the same levels it traded at in the beginning of 2007. However, over the past few months it’s been on a tear… This week it extended its rally (which began in early June), to about 15 per cent”.
- “Shares (including dividends) are now up about 70 per cent since they hit a 5½-year low in March 2009. The rally means that $10,000 invested in shares in 2009 (including dividends) would be worth $17,000, while the same amount
tipped into a term deposit would be worth $12,000.”
- “According to AMP Capital Investors, over the past 60 years the average time to mark a new high after a bear market low has been 41 months. It’s now been 43 months since the March 2009 low.”
Don’t ‘sit on the side lines’ too long – Investment markets can turn around quickly. Statistically, when markets do recover, a lot of the returns are generated in the early stages of the recovery.
Bye for now