The average Investor can only earn or lose whatever percentage the market Increases or decreases, plus yield each financial year. Lets suppose the average yield Is 6pc, and the market top forty Increased by 4pc for the year, then the average would be plus 10pc. The point being we can then compare our performance with the average Investor, plus we can compare with property Investment, and other Investment opportunities. Property Investment cant really be compared to the share market It being funded In a different way. The average Investor borrows money to fund It, where as with shares It Is funded with savings.
I did always think how Interesting It would be for the average Investor to compare the Investment opportunities against each other, taking Into account that shares are a slightly higher risk than property. Life has Its winners and losers but we are not concerned with them, only the average for this exercise. It would be an Interesting project for someone with a bit of time to come up with what the average Investor Is really up to .
cheers macdunk |
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