What’s a satisfactory return now? Pt I

In this two-part feature Greg Hoffman argues that annual returns of 9-10% from stocks are attractive compared with alternatives and within easy reach of most investors.

Australian stocks have historically delivered a total real return of about 7.5% a year. Add in a few percentage points for inflation and the actual (or ‘nominal’) return is around 11% per annum. Not so long ago investors seeking returns of this ilk were laughed at. Hadn’t they heard of mining services companies, or China, or investment banks, asked their brokers?


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