GENERATE INCOME
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3.1 THE CASE FOR EQUITIES - GROWTH<br />
We will now discuss the growth nature of equities.<br />
All Ordinaries<br />
The All Ordinaries Index, which is referred to frequently in the media, simply<br />
looks at the price movement of the share market.<br />
Below is a graph of the All Ordinaries Index from 1960 to 2015:<br />
This graph demonstrates how equities perform as a growth asset over a<br />
long time frame. Even taking into account extreme market occurrences - the<br />
OPEC Oil Crisis in 1973, the 1987 Share Market Crash, the Tech Wreck of<br />
2000 and the recent GFC of 2008 - over the long term the All Ordinaries has<br />
still exhibited phenomenal growth.<br />
CHART 3: ALL ORDINARIES INDEX PERFORMANCE 1960- 2015<br />
7000<br />
6000<br />
2008 Global<br />
Financial Crisis<br />
5000<br />
Index<br />
4000<br />
2000 Tech Wreck<br />
3000<br />
1987 Sharemarket Crash<br />
2000<br />
1000<br />
1973 OPEC Oil Crisis<br />
0<br />
1960<br />
1965<br />
1970<br />
1975<br />
1980 1985 1990 1995 2000 2005 2010 2015<br />
6