Stocks up 18% in 2005

The year ended with the Australian Stockmarket up 17.9% following rises of 22.6% in 2004 and 11.1% in 2003 for a 3 year average or 17.1%pa. Not since 1980 have there been three calendar years of successive rises in the Australian Stock market above 10% in each year. Three years ago, the 3 year average change for the stockmarket (to 2002) was -1.9%pa and any talk around the barbecue about investing in stocks was overshadowed by house price anecdotes with Sydney House prices averaging 14.7%pa over the 3 years to 2002. But these are short term cycles - over the last 20 years, the stockmarket and house prices have averaged about the same rate of growth (around 8%pa).

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