Leave a commentThe 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
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Type of Investment |
1 year |
5 years |
10 years |
20 years |
50 years |
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|
Avg |
Value |
Avg |
Value |
Avg |
Value |
Avg |
Value |
Avg |
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 |