The temptation to sell, or stop that regular investment plan until things ??look a little brighter??, is understandable but history suggests that patience and discipline when things look bleak will pay off handsomely in the future. At times like this it is important that you:
- remember investing is a long term process
- don??t make snap decisions, stick with your original strategy
- speak to your financial adviser.
The table below shows the calendar year returns, including both income and growth, from the main asset classes over the last 20 years. It shows how returns can vary from year to year, and in particular how much they tend to fluctuate.
You can see the asset classes with the greatest positive returns are also usually the ones with the larger negative returns. Chasing last year??s best performing asset class is a recipe for disaster. Historically it has been rare for one sector to perform the best, or worst, for more than two years in a row.
|
Year |
Australian Shares |
Global Shares |
Property Securities |
Fixed Interest |
Cash |
|
2002 |
-4.54% |
-24.25% |
14.85% |
6.21% |
4.66% |
|
2001 |
10.49% |
-9.72% |
14.60% |
5.45% |
5.24% |
|
2000 |
4.80% |
2.24% |
17.85% |
12.08% |
6.27% |
|
1999 |
16.10% |
17.11% |
-4.97% |
-1.22% |
5.01% |
|
1998 |
11.63% |
32.08% |
17.95% |
9.54% |
5.14% |
|
1997 |
12.23% |
41.12% |
20.31% |
12.23% |
5.63% |
|
1996 |
14.60% |
6.28% |
14.49% |
11.87% |
7.57% |
|
1995 |
20.19% |
25.88% |
12.74% |
18.63% |
8.03% |
|
1994 |
-8.67% |
-8.05% |
-5.57% |
-4.66% |
5.36% |
|
1993 |
45.36% |
24.40% |
30.12% |
16.32% |
5.39% |
|
1992 |
-2.31% |
4.48% |
6.99% |
10.41% |
6.92% |
|
1991 |
34.24% |
20.18% |
20.08% |
24.75% |
11.20% |
|
1990 |
-17.51% |
-15.10% |
8.70% |
19.01% |
16.13% |
|
1989 |
17.40% |
26.03% |
2.35% |
14.21% |
18.37% |
|
1988 |
17.88% |
4.27% |
16.06% |
9.39% |
12.84% |
|
1987 |
-7.86% |
6.91% |
5.75% |
18.60% |
13.68% |
|
1986 |
52.22% |
45.63% |
35.42% |
18.92% |
16.36% |
|
1985 |
44.06% |
70.20% |
5.25% |
8.07% |
16.19% |
|
1984 |
-2.26% |
14.00% |
10.07% |
12.01% |
12.29% |
|
1983 |
66.80% |
32.85% |
50.23% |
14.34% |
12.18% |
|
1982 |
-13.87% |
26.30% |
2.18% |
22.57% |
16.60% |
| Average |
10.90% |
10.14% |
12.67% |
8.81% |
5.93% |
Source: Rimes, Iress, Colonial First State.
The table on this page has been prepared using the figures from the standard indices used by investment professionals to measure performance of asset classes. Market indices, or ??benchmarks?? as they are often called, reflect an average of all investments making up the relevant index - both good and bad. These figures represent past returns only and are not an indicator of future returns. The figures for global shares are expressed in Australian dollars.
