Originally Posted by
nztyke
Anyone who thinks that a 20% return on equites is sustainable is living in cloud cuckoo land. Myles is right, you have to look at shares as a long term investment. For example in from my own experience for the year to 10th May 2006 my share investments made a whopping return of 39.6% but in the year to 28th October 2008 I suffered a calamitous loss of 42.2% on my portfolio. Over the last 15 years (which is the sort of time frame you should look at) I have made an average of 9.8% per annum after tax which is about what one would expect. Since the GFC low interest rates have created a huge asset bubble in shares and property; it is all going to come crashing but unfortunately I don't know whether it is going to happen next week, next year or in five years time. In the meantime one can only diversify, including Harmoney, and keep cash reserves to take advantage of the buying opportunities that the next GFC will bring. Sorry to be so gloomy.