There are some risks in Aussie equities, but investors should focus on the remarkable long-term returns local stocks have delivered

There are some risks in Aussie equities, but investors should focus on the remarkable long-term returns local stocks have delivered. The Australian market recently hit fresh multi-year highs, which has triggered a debate about whether local stocks are overvalued. There is no doubt there is some short-term risk in Australian equities, but the short-term outlook is reasonably positive. Investors also need to not just focus on short-term gyrations, but remember the remarkable long-term performance and wealth generation of Australian stocks, particularly relative to other asset classes. A recent report has highlighted that the Australian stock market has been the second-best performing equity market in the past 115 years (from 1900) with a real return (the return you get after inflation) of 7.3% per year. Read more: (VIEW LINK)