GLOBAL - Australia and Sweden have had the best performing equity and bond markets, according to a 104-year study of 16 countries published by ABN Amro.
Since 1900, Australian and Swedish stocks have posted 7.5% real returns, according to the Global Investment Returns Yearbook 2004, the fifth annual edition released by ABN Amro in conjunction with the London Business School.
Bonds returned significantly less over that time, with a 2.3% return in Sweden and 1.3% in Australia.
The report analysed financial information from 16 countries including most European countries, the US, Canada, South Africa and Japan.
While the first part focused on investment returns from 2003, the second used information gathered by the London Business School to try and determine if dividend yields could be used as a predictor of future equity performance.
The report concluded “dividends are important enough to note when making asset allocation,” but not a predictor of themselves, according to Paul Marsh, a professor at the London Business School.
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