You looked at the wrong number on the Mawer Canadian Equity fund. It's ten year return was actually 9.81%. The number you quoted was the group average. It only slightly outperformed XIU, but after commissions it would look even better and has lower beta to boot.
10-year returns (in USD):
US Markets - 8.76%
Developed ex. NA - 8.20%
Emerging markets - 17.0%
Stock market returns can be shown to be poor (or good) if you carefully pick the start and end dates. The 10-year returns above are satisfactory only because the start period is the bear market of 2001-02. But the fact remains that most 10-year rolling periods have returns that beat bonds. It's just that in the late 2000s, 10-year returns were quite poor due to extraordinarily high returns in the 1995-99 period when the S&P went up an annualized 26%.
It is extremely dangerous to invest based on recent history.
I understand (sort of) all of the above but, for me, it is disappointing to look at the S&P/TSX Index and see that it has returned -0.25% over the past FIVE YEARS!!! ending September 30. Perhaps, if you are young and have a long time horizon, it isn't so serious but I am approaching 70 and the fact that I have not been able to grow my portfolio in any meaningful way has a huge impact on my quality of life in retirement.
Can we look forward to five more years of no net growth in this index? Nobody knows but the prospect is even more discouraging.
Here we go again!!
I have been accused of being too negative a lot of the time but I am just as frustrated with all of those who keep trying to put a positive spin on quite a negative situation.
It's tantamount to trying to put lipstick on a pig and, over the past five years, the markets have not exactly been a great place to invest one's money.
In some cases, cash under the mattress would have done just as well.
Invest now and hope that things are better over the next five years. You pays your money and you takes your chances.
Maybe the next generation of retirees will have better luck and timing. For we senior seniors, time is running out.
Last edited by Belguy; 2012-10-12 at 07:47 PM.