Invest
The All Ords Time Horizon and Why it’s Worth the Wait
Good things come to those who wait should be the catch cry of investors in the Australian sharemarket, with new analysis showing just how valuable the time horizon is for predicting future stock success, an investment specialist has advised.
The All Ords Time Horizon and Why it’s Worth the Wait
Good things come to those who wait should be the catch cry of investors in the Australian sharemarket, with new analysis showing just how valuable the time horizon is for predicting future stock success, an investment specialist has advised.

Fidelity International has released data on the ASX Accumulation All Ordinaries Index (All Ords) which shows the market has provided investors with an 11.4 per cent annualised return since 31 December 1979.
Providing analysis on the findings, Fidelity International’s cross asset investment specialist, Anthony Doyle, has explained that the length of time an investor intends to hold their investment is an important consideration,
“as those with a longer time horizon have a greater likelihood of experiencing a positive return”.

“For example, if an investor had bought at the index high before the GFC (on 1/11/2007), one year later their investment had fallen in value by 39 per cent. Three years later, the market was still down by 20 per cent. On the 10-year anniversary of the investment in 2017, it had risen in value by 39 per cent,”
he outlined.
“Today, the value of the investment has appreciated by 67 per cent.”
Highlighting just how important the time horizon is, Mr Doyle said that
“an analysis of daily returns of the All Ords Index since 1979 suggests shows that 100 per cent of investment periods greater than 10 years had appreciated in value”.
“In addition, an impressive 91 per cent of three-year holding periods generated a positive return. Looking at shorter time horizons, 78 per cent of all one-year periods had risen in value, while on any given day there was a 54 per cent probability that the Australian equity market was up.”
Despite such impressive annualised returns being on offer, Mr Doyle has noted that the value of the index the day an investor buys in, and the value of the index on the day that investor sells out, is still of utmost importance.
Holding Periods and Likelihood of Positive Markets
For an average holding period of one day, 54 per cent of holding periods of this length return positive results for investors.
- This positive percentage jumps to 62 per cent when stocks are held for one month.
- The positive figure jumps again for stocks held for one year, with 78 per cent of holding periods providing positive returns.
- At the three-year mark, more than nine times out of 10 (91 per cent), an investor would net a positive return on their original All Ords investment.
- Once an individual has held stocks for 10 years, there’s a 100 per cent guarantee on a positive return, which is also evident at the 15-year, 20-year and 30-year mark.
About the author

About the author


Stock market
International stocks: Diversifying your portfolio beyond Australia
In an increasingly globalized market, Australian investors have the opportunity to enhance their investment portfolio by incorporating international stocks. Diversifying your investments globally can ...Read more

Stock market
Stock market rally likely to continue regardless of Fed minutes tone, says deVere CEO
The bull run that has propelled Wall Street's major indexes to record highs this month is expected to continue regardless of the tone of the upcoming Federal Reserve minutes, according to Nigel Green, ...Read more

Stock market
US stock rally driven more by valuation growth than earnings, leaving tech names vulnerable: Innova
The strong gains in US stocks over the past year, particularly in the technology sector, have been driven more by expanding valuations than underlying earnings growth, leaving them exposed to a ...Read more

Stock market
Sun Silver to make its ASX debut with a $13 million IPO
Sun Silver Limited (proposed ASX Code: "SS1") has announced the opening of its Initial Public Offering (IPO) today, aiming to raise a minimum of $10 million and a maximum of $13 million (before costs)Read more

Stock market
Nasdaq hits record high, underscores the value of tech in investment portfolios
The Nasdaq Composite's surge to an all-time high last Friday highlights the importance of incorporating technology into investment strategies. Read more

Stock market
Apple sets an unprecedented profit pace within the GAFAM group in 2023
After navigating through the economic difficulties presented in 2022, the technology sector has demonstrated resilience and growth, with many companies seeing increases in revenue and stock value. Read more

Stock market
Fintech startup okoora unlocks over $3 billion in forex savings for businesses
Fintech innovator okoora has announced it has saved customers a monumental amount over $3 billion through international foreign exchange transactions. Read more

Stock market
Google's Gemini edges out ChatGPT4 in groundbreaking AI showdown
Google's latest AI model, Gemini, has edged out OpenAI's ChatGPT4 in a recent set of rigorous multi-discipline tests, marking a significant milestone in the large language model (LLM) sector. Read more

Stock market
International stocks: Diversifying your portfolio beyond Australia
In an increasingly globalized market, Australian investors have the opportunity to enhance their investment portfolio by incorporating international stocks. Diversifying your investments globally can ...Read more

Stock market
Stock market rally likely to continue regardless of Fed minutes tone, says deVere CEO
The bull run that has propelled Wall Street's major indexes to record highs this month is expected to continue regardless of the tone of the upcoming Federal Reserve minutes, according to Nigel Green, ...Read more

Stock market
US stock rally driven more by valuation growth than earnings, leaving tech names vulnerable: Innova
The strong gains in US stocks over the past year, particularly in the technology sector, have been driven more by expanding valuations than underlying earnings growth, leaving them exposed to a ...Read more

Stock market
Sun Silver to make its ASX debut with a $13 million IPO
Sun Silver Limited (proposed ASX Code: "SS1") has announced the opening of its Initial Public Offering (IPO) today, aiming to raise a minimum of $10 million and a maximum of $13 million (before costs)Read more

Stock market
Nasdaq hits record high, underscores the value of tech in investment portfolios
The Nasdaq Composite's surge to an all-time high last Friday highlights the importance of incorporating technology into investment strategies. Read more

Stock market
Apple sets an unprecedented profit pace within the GAFAM group in 2023
After navigating through the economic difficulties presented in 2022, the technology sector has demonstrated resilience and growth, with many companies seeing increases in revenue and stock value. Read more

Stock market
Fintech startup okoora unlocks over $3 billion in forex savings for businesses
Fintech innovator okoora has announced it has saved customers a monumental amount over $3 billion through international foreign exchange transactions. Read more

Stock market
Google's Gemini edges out ChatGPT4 in groundbreaking AI showdown
Google's latest AI model, Gemini, has edged out OpenAI's ChatGPT4 in a recent set of rigorous multi-discipline tests, marking a significant milestone in the large language model (LLM) sector. Read more