Forum Archive Index - February 2003

["winner69 ." <wwinner69@hotmail.com>]

So the NZSE40 was 1566 on 1/1/1993

That gives a 2.2% annual return over the last 10 years plus a few weeks. 
Just as well for dividends - the NZSE40 Gross annual return has been 8.7%. 
Bear in mind this index assumes dividends are reinvested.

Small caps - well they have performed better with the NZ Small Caps Capital 
Index showing annual returns of 5.0%. Including reinvested dividends 12.1%

In spite of the S&P500 being 47% off it's high it still shows a capital gain 
of 6.7% in the same period - higher than both the NZ capital indices 
mentioned. Anybody know the annual return with dividends reinvested?

Good reasons and theories no doubt abound re these stats.

Says to me the NZ market is low growth (ie low earnings growth /low capital 
growth) and essentially is a yield market. This is why the NZ market has 
been less volatile than most world markets. The way the country is going 
probably be like this over the next 10 years as well.

Maybe not a bad way to be in a global secular bear market








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