Below illustration depicts the
#stockmarket #return, based on ASI (Bloomberg:
#CSEALL ) for the past 35 years from 1985 to 2019, on calendar year basis.
#ASI total return
#index (which considers dividends) was not used as it is only available from 2004 onwards.
Accordingly,
- The stock market has experienced more positive years than negative years
- For the past 35 years, the
index posted positive calendar year returns 60% of the time and negative calendar returns 40% of the time
- The worst calendar year return was -41% posted in 2008, during the global financial crisis and at the height of the war. The best return was 125% posted in 2009 at the end of the war
- Regardless of the bad press on the stock market,
#listed #equities have delivered
#wealth for its participants over time. ASI has posted an average calendar year return of 42% over the positive years and -15% over the negative years
As data indicates, the pattern of
#returns differs over the years. Thus anyone who chooses to
#invest in listed equities, should learn to accept the negative years. You need courage and patience to stay invested through
#bearmarket since no one can consistently time the market to get in and out and skip down years.