Monday, August 11, 2014

Canadian Equities, Long Term

Over the past 112 years, from 1900 to 2011, Canadian Equities have had a real return of 5.7% per year. The real return on Canadian Bonds was 2.2%. This is the real return which excludes inflation. In any event, this return is similar to the US. See page 40 of Credit Suisse Global Investment Returns Yearbook 2012.

The nominal rate of return for Canada was 8.9% per year for equities and 5.3% per year for bonds. The nominal rate of return is before inflation is factored in.

The real winner over that 112 period was Australia which had a real return of 7.2% per year in equities. Australian bonds had a real return of just 1.6% per year. Their nominal rate of return was 11.3% for Equities and 5.5% for bonds. For this information, see page 38 of the above report.

There is also an article about the study three British economists did when they examined the historical returns of stocks and bonds in 19 countries from 1900 through 2012. The economists were Elroy Dimson, Paul Marsh and Mike Staunton. The article is at the Investment Reporter

On my other blog I am today writing about Savaria Corporation (TSX-SIS, OTC- SISXF) ... continue...

This blog is meant for educational purposes only, and is not to provide investment advice. Before making any investment decision, you should always do your own research or consult an investment professional. I do research for my own edification and I am willing to share. I write what I think and I may or may not be correct.

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