If you are investing as a long term activity, you have to be realistic about your returns. The chart below shows the index returns for the top 10 stock exchanges around the world. You can see that the returns vary not just on the holding period, but also where you invest.
There are 2 key takeaways:
- The best is to have a global portfolio since you cannot forecast which country would do well in the future
- If you can get a return that is 1.25 to 1.5 times that of the benchmark index in the long run (at least 10 years), you can pat yourself.
Index returns
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