[Smart Investing] What history teaches us about long-term returns

Investments and personal finance insights from Vanguard Australia

19 August 2020 Hi everyone, In this week's Smart Investing, we present the second instalment in Vanguard's 2020 index chart series: What history teaches us about long-term returns. This year's index chart analyses how different asset classes have performed over the last thirty years and why it is important to diversify and stick to a disciplined investment plan. We have also included a short video to accompany this. Lastly, we also present Vanguard's mid-year economic and market update. This report covers Vanguard's forecasts on global economic growth and our outlook on topics such as the market recovery, global trade, and employment. As always, feel free to email us with your questions or feedback.  Regards, Robin Bowerman Head of Corporate Affairs Vanguard Australia

What history teaches us about long-term returns By: Tony Kaye Using Vanguard's 30-year index chart as a benchmark, it’s clear that making additional regular incremental investments over the same time period would have supercharged your total returns. Read more

Vanguard Australia 2020 Index Chart  The 2020 Vanguard Index Chart powerfully illustrates how sticking to a disciplined investment plan, with diversification across a range of asset classes, will invariably override short-term markets volatility and deliver long-term returns Watch video

Vanguard 2020 mid-year economic and market update By: Tony Kaye Globally, Vanguard foresees global growth falling by about –3% in 2020 which means Vanguard is more positive about the global economy than the International Monetary Fund but less optimistic than much of the investment industry. Read more

VANGUARD IN THE NEWS Take your CAPE ratio with a grain of salt Ally Selby | Financial Standard | 17 Aug 2020 Earlier this month, for the fourth time in its history, Robert Shiller's CAPE ratio - which tracks market value by measuring earnings data over a 10-year period - surpassed 31. Vanguard Australia senior investment strategist Aidan Geysen said investors should question why the CAPE ratio is currently at a high point. To read more, please visit the Financial Standard website. Please note the link above will show a copy of the article (where freely available), or the publisher's website if a subscription is required.

IN CASE YOU MISSED IT

A beginner's investment guide to long-term wealth By: Tony Kaye It's often said that starting out early on one's investing journey will deliver good long-term results. Read More

Dealing with the dividend downturn By: Tony Kaye The latest Australian corporate earnings reporting season is now underway, and it's widely expected many listed companies will announce cuts to their shareholder dividend payments. Read More

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