ANZ Report Points to Share Market as Wave of the Future
Over the next 10 years, Australians would do well investing on the share market, which according to new report released on Wednesday by Australia-New Zealand Banking Group (ANZ) will be the sure bet of the future.
Titled 'Asset Returns: Past, Present and Future', the ANZ research has predicted that rates of return, especially in the case of key asset investment segments, will spiral upward in the immediate years, which is a trend that could be sustained in a decade.
The research findings detracted from the traditionally safe investment option offered by the property sector, which ANZ maintained will still deliver the goods but not as much as the returns that can be realised in channelling some funds on the local bourse.
The ANZ report also noted that for the past two decades, real estate holdings have proven their worth as safe and veritable investment camps for Australians seeking to capitalise on the investment returns of their extra cash.
From the latter part of the 1980s, the research findings showed that owning a home in Australia has consistently delivered a yearly return of at least 12 percent, owing mostly to capital gains tax breaks enjoyed by local house owners.
The report added that even if the government had decided to strip homeowners of their tax exemptions, the likelihood of collecting returns from property investments would not be significantly diminished.
ANZ said that the Australian property sector has been largely responsible in contributing to the personal coffers of those who wisely purchased and maintained houses during the majority part of the past 20 years.
And not in distant place were government bonds, term deposits, investor housing and commercial property investments, with the latter promising the best return, but the wave of the future, ANZ stressed, can be found on share holdings, especially for the so-called blue chips.
According to Yahoo7 finance analyst Peter Switzer, focusing long-term investments on quality stocks will do the trick for most investors, which he pointed out are "quality ones that pay good dividends ... you (could) get in cash or term deposits and the chance for the periods where the returns are 10 to 12 percent."
"If you're in stocks and your super is reasonable, there are plenty of good arguments to stick solid with stocks," Switzer added.