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The Canadian Consumer Price Index has been quite stable
since 1992. In the 30 years from 1963 to 1992, the average annual
increase (inflation rate) was 5.7%. During that time, there were 5
years where the inflation rate was over 10%, including 1981, when the rate
was 12.4%. 1981 is also the year when Canadian 5 year mortgage rates
were over 21% for a couple of months. The average 5 year mortgage
rate from 1963 to 1992 was 11.03%.
Historical returns on stock markets and other investments
to December 31, 2012
Type of Investment
1
year
5 years
10 years
20 years
50 years
Avg
Annual
Return
Value
Avg
Annual
Return
Value
Avg
Annual
Return
Value
Avg
Annual
Return
Value
Avg
Annual
Return
Value
Cdn 3 month T-bills
1.0%
$1,010
1.0%
$1.053
2.1%
$1,232
3.3%
$1,932
6.2%
$20,155
Cdn Govt Bonds 1 to 3 year
1.1%
$1,011
1.6%
$1,081
2.5%
$1,285
4.0%
$2,183
6.6%
$24,464
Cdn Govt Bonds over 10 years
2.3%
$1,023
3.4%
$1,183
4.0%
$1,487
5.4%
$2,848
7.6%
$38,494
S&P/TSX (Cdn) Index (formerly TSE300)
4.0%
$1,040
-1.1%
$945
6.6%
$1,893
6.8%
$3,762
n/a
n/a
Nikkei 225 Index in Cdn$
9.1%
$1,091
-1.0%
$949
2.4%
$1,271
-0.3%
$943
n/a
n/a
S&P 500 (US) Index in Cdn$
13.5%
$1,135
1.8%
$1,093
2.3%
$1,259
7.2%
$3,994
9.6%
$99,727
European stocks in Cdn$
17.3%
$1,173
-3.6%
$833
4.1%
$1,497
7.6%
$4,326
n/a
n/a
Emerging markets stocks in Cdn$
16.0%
$1,160
-0.5%
$976
11.7%
$3,017
7.8%
$4,463
n/a
n/a
Canadian Consumer Price Index All Items
0.8%
$1,008
1.6%
$1,082
1.9%
$1,212
1.8%
$1,442
4.1%
$7,631
Value is the value at the end of the
period, in Canadian$, of $1,000 invested at the beginning of the period.
n/a = not available
The rise of the Canadian dollar has had a significant
effect on the above results. As an example, see the following 10
year results in US$:
S&P 500
7.1%
$1,986
European stocks
9.0%
$2,361
Emerging markets stocks
16.9%
$4,760
Sources of data used to calculate the above returns: Bank
of Canada Rates and Statistics - Interest Rates, Standard
& Poor's, Statistics
Canada, Yahoo, Morgan Stanley, UBC
Pacific Exchange Rate Service.
The returns are the total returns with
dividends or interest reinvested.
All values and returns are in Canadian $
We have added an estimate of
1.5% for annual dividends to calculate the total return index for the Nikkei 225.
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