One of the first questions friends ask  me about investing and the stock market concerns annual returns. Here is yet another answer to that question.

Rohan at Data Diary posted this excellent chart on Australian returns.

Rohan’s point concerned the cyclical nature of the market, which his chart graphically illustrated.

However, the following statistics point to higher annual returns than Rohan’s chart indicates.
Damn those Swedes pipping us to the highest real return. For those playing along at home, the Australian real return of 7.6% would have doubled your real dollar every 9.5 years. For new investors that absolutely does not mean you should expect a real 7.6% or nominal (before inflation) 11.9%  return every year. You should expect volatile returns that may not average that high even if you invest for 100 years.

Related posts:

1. Australian Share Market Performance and Returns
2. Benchmarking an Australian Share Portfolio
3. Telstra – Stock Market Returns Inverted
4. Look for future returns not market bottoms
5. Market Cap vs Enterprise Value vs Share Price vs Value
6. Can an Overvalued US Market Provide Good Returns?