At Bennett & Co we frequently highlight the importance of investing for the long-run, and encourage investors to consider the historical long-term investment returns of Australian and International shares. According to research produced by Vanguard Australia, Australian shares have returned approximately 9.7% per annum over the past 30 years. Despite market downturns caused by events such as the Global Financial Crisis (GFC), the Covid-19 pandemic and the recent inflationary environment, Australian shares have remained a high-performing, long-term asset class.
Duncan Burns, a Head of Investment for Vanguard, outlines a similar perspective in a recent article. Burns emphasis's the importance of investing for the long-run and the risks associated with leaving markets during periods of economic decline. Frequently investors will sell down holdings during market downturns, crystallising losses, only to buy back in when confidence has returned and markets have recovered. Burns proposes that investors look to historical data during periods of uncertainty to make more logical trading and portfolio decisions.
If you would like to discuss further, please call Richard Bennett (07 3876 8131 or 0412 055 702), Tony Garnham (07 3184 2520) or Michael Lynch (0412 144 574).