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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

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