ASX 200 (XJO) vs S&P 500 (SPX) Market Index Trend in 30 Years

Chart below shows XJO market index (ASX 200 - top 200 Australian companies) vs SPX market index (S&P 500 - top 500 US companies) in 30 years from 1991 to 2021.

Performance In 30 Years

  • XJO - 303%    (4.7% p.a)
  • SPX - 1062%  (8.5% p.a)
It seems a lot but per annual, it is reasonable. Since my goal is to beat the Australian market by 20%, my portfolio return should be > 5.7%. So it is not that hard to achieve right? Probably I should beat the US market instead? If it is based on US market, my portfolio should be a least 10% in order to beat the market.

Few conclusions I can make from this chart:
  • US market is more volatile than AU market but the return is higher
  • US market is probably oversold (start diverting in 2009).  It seems like a potential pullback / retracement in the US market is coming soon?
  • In long run, investment return in stock market is always positive


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