Italian investors who put their
money into bonds earned better returns over the past decade than
those who played the stock market, according to a study by
Mediobanca released Tuesday.
From December 31, 2004 until present, investors in the
Milan stock market lost a total of 0.5% while bonds yielded
2.3%, according to the study.
Its figures are gross, before taxes and inflation are
deducted.
When inflation is included in calculations, equity markets
lost an average of 25% but with dividends an average gain of 19%
is recorded, say Mediobanca figures.
And when figures dating from January 1996 are added to the
total, shareholders in the equity markets averaged a return of
8.9% including dividends.
According to Mediobanca, equity investors generally assume
they should earn an average of at least 3.5% to 5% per year as
a reward for the extra risk they bear, yet these results say
they may be wrong.
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