long term xao investment disaster ...

The XAO was 2305 in 1987.

The XAO was only up 38.9% from that when it hit its November 2008 low of 3,201. Today it is down 50 points to 3,378 and giving every indication that another test of 3,201 could be in the offing.

Anyone who held an All Ords basket of shares from 2,305 in 1987 right through to November 2008 would only be a paltry 38.9% up, up a little more today.

That is way, way below the rate of real inflation. So in real terms they would have lost a fortune.

Just compare 1987 property prices with 2009 prices, 1987 wages with 2009 wages, 1987 food prices with 2009 prices to get an idea of how far down they would be!

Now how often have you been told, "Quality shares always go up in the long term. You can't go wrong buy quality shares and holding them for the long term."

As we've seen the long term holding of the All Ords basket for 21 years since the XAO hit 2305 has been in real terms an absolute disaster. Are investors meant to invest in the "long term" for 50 years? No thanks!